the first secured Convertible Security with a face value of $2,050,000 will be issued by the Company to Bergen in consideration of a payment of $1,600,000 on execution of the Agreement;
the second secured Convertible Security with a face value equal to 122.
This conversion right gives a convertible security a "conversion value" equal to the market value of the shares obtainable from conversion of the bond.
Trading decisions are typically based on a comparison of the market value of the convertible security with a mathematically computed expected value relative to the price of the underlying security.
After calculating incremental EPS for each contingent share group, convertible security and group of options, warrants and equivalents, a company's next step is to rank all potential common shares from the lowest EPS effect (most dilutive) to the highest EPS effect (least dilutive), excluding all potential shares with an incremental per share effect greater than basic EPS for income from continuing operations.
For example, when a cash payment is required or permitted at the conversion of a convertible security, the cash proceeds assumed to be received also are assumed--using the treasury stock method--to be applied to repurchase common stock.
The method used to determine the dilutive effect of a convertible security
And the convertible security
has upside potential, an advantage that no money-market instrument or even most straight bonds can't match.
85, Yield Test for Determining Whether a Convertible Security
Is a Common Stock Equivalent, and is consistent with the APB's objective in Opinion no.
Largest convertible security
ever issued by a Latin American company
Of the total shares registered, 4,000,000 are reserved for acquisitions; 2,860,565 for Selling Stockholders; and the balance of 9,909,426 for potential issuance pursuant to rights granted to convertible security
The agreement calls for three separate transactions, a $1,000,000 convertible security
, a $4,000,000 purchase by Everbright of common stock of CSCC and a joint venture manufacturing agreement.
The proposed terms provide that upon completion of the transaction, the number of shares of CNGC issued to GRDM would equal 50% of the combined Company's issued shares before any share issuance resulting from exercise of CNGC's existing options, warrants or convertible security