'option' held by axof if financing occurs, page-5

Yes, there's scope for this option to become worthless-the company controls the circumstances. It only comes into play if they finance a new issue over $100M AND offer notes as a part of that deal. The point is that there is nonetheless an option embedded in the current notes that is in addition to their calculable value, if financing using new notes occurs. Using their calcs, if they offered new notes at 70c or lower, I calculate that current noteholders would be able to buy these at 30 cents lower than face value. Not a bad option to hold.
Holding AXOG.