Who else thinks that the conversion price of convertible notes should be either some number based on the stock price the day the notes are issued or at least some other price agreed upon between issuer and investor that isn't less than a certain discount, (maybe 20%?), to the market price on the issue date?
I thought investing was supposed to entail a certain amount of risk and all to often that risk is only bared by the public shareholder. Convertible debt equity financing has made it too easy for these so-called toxic lenders to get rich at the expense of the little guy. Notes that are issued at original issue discounts of 10-25%, often with warrants, and convert no matter what the current share price is are total bullshit! This isn't an investment with risk. It's more like a public offering with huge fees paid to the underwritters. Why doesn't the SEC see it this way?
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