M2 EQUITYBITES-March 10, 2015-Brazil Minerals extinguishes 46% of convertible debt
note held by St.
BioNitrogen today announced its intent to consolidate 100 million of its issued and outstanding common shares on the basis of 300 existing shares for 1 share for the holders of such 100 million shares that were issued in December 2011 as a settlement of a convertible note and debt dated as of February 15, 2007 (the Convertible Debt
2m secured convertible debt
financing(C)2012 M2 COMMUNICATIONS
The convertible debt
has a three-year term and carries interest at 10 percent per annum.
6m of senior secured convertible debt
have completed the conversions of their respective positions to equity.
The TPA, Convertible Debt
, Convertible Preferred Shares, Warrants, and Other Equity-Related Financial Instruments, is not intended to provide interpretative guidance or to describe the accounting for specific instruments, but rather to assist preparers and practitioners in identifying the scope of and the inter-relationships between the various accounting pronouncements.
04-8, The Effect of Contingently Convertible Debt
on Diluted Earnings Per Share, that the effect of contingently convertible debt
("Co-Cos") should be treated from issuance date as part of diluted EPS, without regard to the "trigger" being reached on the contingent event.
The purpose of this study is to extend Poitevin (1989) to demonstrate that noncallable convertible debt
can be used to avoid predation by an incumbent firm against an entrant in a "deep pocket" predatory game.
In an effort to formulate guidance in this area, the IRS requested commentary from the public on (1) the tax treatment of the exercise of an option to acquire a partnership interest, (2) the exchange of convertible debt
for a partnership interest and (3) the exchange of a preferred interest in a partnership for a common interest; see Notice 2000-29.
Keeping this in mind, why should a firm opt to choose convertible debt
instead of straight debt?
One, Accounting for Financial Instruments with Characteristics of Liabilities, Equity, or Both, would provide guidance on accounting for the noncontrolling interest in a consolidated subsidiary, for costs incurred in issuing a financial instrument that has liability or equity characteristics and for repayments and conversions of convertible debt
If an investment below the 20 percent level does not provide sufficient funding for the dot-com, other financing methods may be employed, including convertible debt
, preferred stock or warrants in the dot-com.