Model how a convertible note turns into shares over time. Choose a fixed price, a variable price set at a percentage of the lowest or average VWAP over a lookback window, or the lesser of the two. Add a floor, a 4.99% or 9.99% ownership blocker and a hypothetical price path, and the table shows every conversion: shares issued, the holder’s stake and cumulative dilution.
“75% of the lowest VWAP” means a 25% discount.
Measured over the days up to and including the conversion day.
Leave blank for no floor.
Leave blank to let each conversion go as far as the blocker and principal allow.
Usually 4.99 or 9.99. Enter 100 for no blocker.
An assumption about behaviour, not something the filings state.
Oldest first, separated by commas.
Shares issued
3,472,222
5 conversions
Dilution vs. original count
17.4%
23,472,222 shares outstanding after
Principal converted
$1,250,000
$750,000 still outstanding
Fixed-price comparison
Not applicable
A variable price has no fixed share total.
The price path ended with principal still outstanding.
Hypothetical illustration of how the contract arithmetic works. It is not a forecast of any company’s share count or price, and it is not investment advice.
| # | Day | Reference | Conv. price | Principal | Shares issued | Outstanding after | Holder stake | Cumulative shares | Cumulative dilution | Limited by |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 1 | $1.00 | $0.75 | $250,000 | 333,333 | 20,333,333 | 1.64% | 333,333 | 1.7% | Per-conversion amount |
| 2 | 2 | $0.80 | $0.60 | $250,000 | 416,667 | 20,750,000 | 2.01% | 750,000 | 3.8% | Per-conversion amount |
| 3 | 3 | $0.60 | $0.45 | $250,000 | 555,556 | 21,305,556 | 2.61% | 1,305,556 | 6.5% | Per-conversion amount |
| 4 | 4 | $0.40 | $0.30 | $250,000 | 833,333 | 22,138,889 | 3.76% | 2,138,889 | 10.7% | Per-conversion amount |
| 5 | 5 | $0.25 | $0.1875 | $250,000 | 1,333,333 | 23,472,222 | 5.68% | 3,472,222 | 17.4% | Per-conversion amount |
Shares are rounded for display only; each round is calculated on the unrounded figures. Holder stake is measured right after converting, before any sale.
