42 reasons to buy GBZ, page-14

Maybe i am telling you to suck eggs. i think you requested a more literal description. here it is:

The con note is debt instrument. Its a loan that must be paid by back by GBZ. GBZ is a business generating negative cashflow and there are no means to payback the loan except through the sale of assets (like White Dam). The positive is that if GBZ is able to build value and appreciate SP (>8.75cents) then the debt issuer has every incentive to convert the loan to shares. In this way the debt instrument becomes more like a typical capital raise.

GBZ is banking on the expectation that the GBZ share price will appreciate (>8.75cents) and trigger conversion of the loan to shares. Its also banking on the imminent sale of White Dam. If the aforementioned do not eventuate then GBZ will be forced to issue shares (and options) to a predatory fancier. This may done in one massive dilutionary block or otherwise in several smaller parcels over time that @bcjk3 refers to as the con note vortex. Once in the vortex the capital structure becomes increasingly poisoned and GBZ becomes an uninvestable turd crowned by chunky golden nugget that is Twin Hills.