Uhm, that's pretty much how a convertible note works. It...

Uhm, that's pretty much how a convertible note works. It can be converted to shares, that's what it does. Floor of 1.5c and ceiling of 4c is quite reasonable imho. The floor ensures that it's not "at any time at any price" and the ceiling retains upside for the convertible note provider is there's a very favourable award although it does obviously reduce the amount of shares they get issued also. Extremely unlikely they'd be converting prior to an award. Given the two year term I suspect most likely they'd convert at some unknown time post receipt of funds then be a bit of an anchor as they sell down. But alas their strategy is theirs to determine. They've got multiple ways to make bank and will obviously choose the better one. The company could obviously choose to pay them out post award too which still nets them a reasonable sum.