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Simon Gerovich
@gerovich
Founder & CEO @metaplanet listed on the Tokyo Stock Exchange (3350:JP / $MPJPY) | 株式会社メタプラネット代表執行役 CEO | Applied Math @harvard | @ypo member
가입 November 2011
537 팔로잉 중    93.9K 팬
I think it’s important for me to address one pivotal piece of our convertible bond financing, which you will see noted in the full legal notice and in the presentation deck. I'm lending up to 55 million of my own shares to support the deal at 0.75%, which is well below the current market rate. I want to explain why, because there is a simple reason. Convertible bonds are bought by institutional investors who carefully manage their risk. A convertible combines a bond with the right to convert debt into shares later at a set price. Many investors value that equity component but hold it on a balanced, market-neutral basis rather than betting on where the share price goes. To do that, they need to be able to borrow shares. The more shares available at a competitive price, the lower the borrowing cost and the more investors are willing to pay Metaplanet for the bond. If you want to go deeper, ask any AI how stock borrowing costs affect convertible bond pricing. Stock borrowing and lending are standard parts of convertible financing around the world and directly impact pricing. When borrowing shares is difficult or expensive, the issuer gets less favorable terms. When shares are readily available and cheap, terms improve. For Metaplanet that means a lower cost of capital and less dilution for existing shareholders. That's why I'm lending shares from my own holdings below the market rate – to help Metaplanet secure the best terms available and to help make this financing a success. The lending arrangement was reviewed and approved by the independent directors of Metaplanet, with me recused from the decision.
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