Andy.. think of it like this..This is a possible scenario as I...

Andy.. think of it like this..

This is a possible scenario as I have NO idea what did/could happen.

The note holders are probably sophisticated INVESTORS.
The note holders MAY NOT be share holders.
Think of them as financiers/money LENDERS?
Think of them as wanting a BIG return as QUICK as possible.
Think of them knowing EXACTLY what they are doing.
Think of the RISK.
Think of possible ways to DE RISK the investment.
Think SHORT term (say 1 month)
Think MEDIUM term (say 6 months)
Think of EXIT strategies.
Think of PROFITS.

Two entities are used in an imaginary example, you and me.
I buy 10,000,000 shares on market in Dec-2013 for .004c each. ($40,000.00)
I am now a part owner. I can see the upside of this
I, as a holder have entrusted the directors to make decisions, hopefully in my best interest.
I hope the directors keep me up to date every 3 months about the companies finances and they do, maybe I don’t even care.
I know the risk/reward.
I hope the company succeeds and makes me lots of $

You lend the same company $500M in the form of C. notes. UNSECURED.
You WILL EXPECT to be kept up to date about the financial position of the company as you are a financial backer.
You will do what ever to protect your investment, legally.
You will do what ever to get the maximum return from your investment, legally.
Will you care if I loose $? This is how you make your living.
(Every day there are winners and there are losers.)