An aggregate of $300,000 in principal amount of the debentures may be converted into Rosetta's ordinary shares at a conversion price of $0.0944 per share.
That's 3.17 million shares at $0.0944!
They'll get shares at $0.0944, while you pay $0.49 ?
there was another split last year on July 6 at the ratio of 1 for 4. With the 1 for 15 yesterday, the total was at 1.24 million. The 632k just announced brings that total to 1.87 million after May 22. If it goes down to 3.50 tomorrow, which is quite possible but not necessarily so, the mrk cap will still be a tiny 6 million. The upside is huge. I will be a happy buyer tomorrow if the slide happens, but I doubt it.
Today's news while it was significant, does not warrant a 300% increase in share price. I think today's run up was engineered.
While the news is good and prospects are (potentially) bright, company has to show revenue. So far quarterly revenue has been < 100K. So next quarterly report will be telling.
But the company did get a new lease of life today.