announcement?, page-44

That's right Eagles, convertible notes are a debt instrument & designed to protect the holder from a falling SP, should that transpire.

eg If SP drops to .017 as a result of selling then face value of note .05 divided by .017 = 2.94 coversion rate, so the 42m notes are x by 2.94 become ~124m shares, haven't factored in discount too but just for example's sake. Disappointing they had to do that at this stage of the game, a Right's Issue for the full amount of the current funding shortfall would have been taken up in full regardless of any underwriting.