There is still 3 mil more notes to be converted.. so what does...

There is still 3 mil more notes to be converted..
so what does this mean?
5 days ago cap was 113.5 mil * 0.14 = 15.89 mil AUD
today at high became 350 mil.

Will they be converting 3 mil notes into shares soon???

Now current price of 1$ current cap is : 113 mil
... if it goes to 0.50 tomorrow the cap will be back to around 60 mil and someday the 6 mil notes get converted to ordinary shares ? diluting it bit further?

Is that how it works? I am a newbie and trying to understand.