Ann: Appendix 3B, page-122

I've been wondering why Arena didn't convert the last $50,000 of note 1.

If you do the sums they got 28,688,524 shares. The new total shares on issue is 584,584,071.

28,688,524 / 584,584,071 * 100 = 4.9%

They don't have to declare a substantial share holder notice. If they had of exercised the other $50,000 of the note they would have gone over the 5% holding and would have to declare themselves as a substantial holder. If they change their holdings by selling they have to declare that as well. They'll be able to sell without anyone knowing. The fact they've purposefully kept below the 5% threshold also proves they've sold the first lot of shares they exercised for $550,000.

It's going to be hard for the share price to gain traction with Arena constantly selling. They'll want the share price to drop so they can get cheap shares for notes 2 and 3.