KWG Granted Waiver of Minimum Listing Price for Proposed Private Placement of Convertible Debentures

DEFINITION of 'Convertible Debenture'

A type of loan issued by a company that can be converted into stock by the holder and, under certain circumstances, the issuer of the bond. By adding the convertibility option the issuer pays a lower interest rate on the loan compared to if there was no option to convert. These instruments are used by companies to obtain the capital they need to grow or maintain the business.