The announcement only tells us that DigitalistâŻGroupâŻPlc (DIGI) is adjusting the maximum number of shares that can be issued under its existing convertibleâloan instruments (and its 2021 stockâoption programme) and that it has set new subscription prices for those shares. The filing does not disclose the precise conversion ratios, interest rates, maturity dates or the exact number of shares that each loan will convert into â those details are normally contained in the prospectus or the companyâs circular to shareholders. In other words, the public summary does not give the exact conversionâratio figures; youâll need to review the full registration statement or the convertibleâloan terms sheet to obtain the specific âXâŻshares per âŹ1âŻmillion loanâ or â1âŻshare per âŹY of principalâ ratios that will apply.
From a trading perspective, the key takeâaway is that the company is expanding its equityâraising capacity while likely keeping the conversion terms attractive enough to entice existing loanâholders to convert rather than demand repayment. This typically signals confidence that the share price will stay at or above the conversion price, which can be a bullish catalyst. Watch the upcoming detailed prospectus release (usually within a few days) for the exact conversion price and ratio; if the conversion price is set at a modest premium to current market levels, expect upward pressure on the stock as investors anticipate a dilutionâadjusted upside. In the short term, position size should be modest until the exact terms are known, but a longâbiased stance (e.g., buying on dips with a target near the new conversion price) could be justified if the ratio implies a conversion price below the current trading range. Keep an eye on volume spikes at the announcement of the full terms, as that will confirm market appetite for the convertibleâloan conversion.