Over the years, my memory (poor as it is) tells me that the conversion price is typically only slightly above the average share price for the 5, 10, 30 days prior to issuance of the debenture - it could even be set as of a certain day, but I wouldn't think so with a stock as thinly traded and easy to manipulate as POET. So if the stock is at a buck, the conversion may well be at a buck ten or twenty. If the debenture is for a longer term, you might see it around $1.75. It all depends on the bargaining power between the issuer (Poet) and the investor. That's why I'm hoping FJ's post this morning about it being issued in connection with the development of a product is accurate. If it's just a plain old loan (especially with conversion rights), well, chances are slim that the share price would react favorably.

Even if this filing has no current implications (ie, a pending deal), it's still handy to have. If we don't have sufficient cash flow, it's a nice alternative to out and out share sales, especially at the current price. But it depends on the terms of the debenture.