What do you think the reasoning is behind this approach to raising capital, issuing a convertible debt instrument at 8% for only 9 months?
https://www.nzx.com/companies/PLX/announcements/296353
Is the investor(s) not willing to stump up for the shares outright and hedging their bets that they get their money back plus interest, with the option to convert to shares at .28 if the SP is higher at the time?
I get it that PLX need the cash, it's more about how they've structured the capital raising and why it would work for PLX
and the investor that I'd be interested to hear views on. TIA.