small caps

Solar Energy Initiatives, Inc. (OTC: SNRY) has retired a $135,000 legacy convertible note, a move that removes the potential dilution of up to 1.35 billion shares that the note carried. The company says the retirement cleans up its capital structure and protects existing shareholders from a massive potential increase in shares outstanding. The small size of the debt relative to the dilution risk is drawing attention to how punitive legacy convertible terms can be for micro-cap companies.