What's in a name?

LATE October, Global Invacom announced a reverse takeover deal, which, among other things, involves it buying into a Malaysian company and it issuing S$20 million in unsecured redeemable structured convertible notes at conversion prices of 10 to 20 per cent discount to the market price of its shares at relevant periods.

The convertibles will result in massive dilution of existing shareholders and such instruments have been known as "death spiral" convertibles.

Since the announcement, the stock has tanked 35 per cent. In the year to date, it has fallen by a massive 68 per cent.