Jul. 27 at 2:55 PM
$LIF $SPY
Just saw Lif360 had issued convertible notes right around where I bought it. Conversion price is
$81 while it was issued when the stock was at 61. Also 0% interest. Seems like investors are heavily optimistic about their growth. A 30% premium with 0 interest. Available for conversion in 2030. But eligible to convert once the price is above
$81. Since these guys bought at a premium with no interest, its highly likely that they won't come in and dilute anytime soon. And since its 0% interest, I guess they are betting on big growth over the next 12-24 months.
My view is that it makes no sense for them to agree for 0% interest for something that matures in 2030 unless they expect a sharp rise in the stock price over a 12-24 month horizon backed by strong top and bottom line growth.