Eer,That clause is standard and is in all convertible note...

Eer,

That clause is standard and is in all convertible note subscription deeds. It protects QVT from TZ doing anything naughty - like issuing lots of shares cheaply elsewhere. I'm sure QVT's lawyers would have insisted on it.

MM and co have been insisting that a low price capital raising is coming imminently - 30c.

Now that QVT has taken notes at 42c, how would it look if TZ issues shares imminently at below 42c thereby allowing these notes to be repriced down? - and all BEFORE these huge deals that they say that they are doing?

The answer is - not very good at all. Cannot be justified.

How would it look if TZ issues share at below 42c AFTER such deals?

The answer is - not very good at all. Cannot be justified.

A true cynic might say that QVT did not want the share price to rise until (a) they were sure that a major deal was on the cards, and (b) they received 42c convertible notes. Such a cynic would now think that the path is now clear for TZ.