Contrary to what was just earlier posted, we're not being "sharfted", lol.
There's no immediate dilution of shares....the debentures are not able to be converted to common shares until Sept., 2015 (three years away!)...and at that time, can be converted for $1.40, which is considerably higher than our price now. ('Course it will likely be lower than what LSG will be selling for by then.)
This is simply a relatively inexpensive way of raising money for development and operational costs, paying only 6.25% interest. As a stockholder, I much prefer they raise cash this way than to just offer additional common shares.
the maximum would be 714 shares per each $1000. debenture($1.40)or 64,287,714 shares total which is about 15% of lsg shares currently issued.
other may want the return of their $1000. cash in lieu of shares so there is no definitive number of shares known for dilution.
further, lsg has a 2 year window in which they can redeem the debenture for cash($1000.) instead of shares at lsg discretion provided the lsg share price is over $1.82.
this seems a better financing than the sprott secondary loc which hopefully will go unused. only time will tell the actual dilution as in 3-5 years there is very much that can happen including share and debenture buy-backs.
Definitely NOT a good move...They already have 410 Million shares outstanding...That's way too many shares especially for a junior...It's going to take s LOTS of production and higher gold to make a significant increase inn EPS as it is now....Any increase in production and higher gold prices become much less effective...
You must be oiut of your mind! Mccushey told everyone that there was no need for anymore financing. That LSG was set and could wait until cash flow took care of the balance of the expansion. What changed? He has lied over and over with this company and will do it again.