Ann: Financing & Management Update, page-70

If we still have the cash in the bank? Why can't we pay off the debt and do another CR instead of issuing shares to the financier with such a lower value (compare to the current market price $0.03)

From the ann:
offer to ECP (or its nominees) 20,000,000 Shares at a deemed issue price of $0.00001 to raise $200, to be issued with the issue of Convertible Notes under Tranche 2;
350,000,000 options to acquire shares in the Company, with an exercise price of $0.004 each, expiring 3 years after the date of issue, to be issued to ECP or parties nominated by the ECP at an issue price of $0.000001 each to raise up to $350 (ECP Options), to be issued subject to shareholder approval;

And why we need to pay the sum of $400k?
If the shareholder approval is not obtained on or prior to 31 July 2015 in circumstances where the Company has secured equity or debt funding of in excess of $100,000 from a third party, then the Company will pay ECP the sum of $400,000 (plus GST).