Ann: Convertible Note Facility Drawing, page-10

$500k loan with a 7% interest rate. Once drawn (as it now is) the holder of the notes has the option to pay the conversion price to convert them to shares. If the holder of the notes that has just lent the cash to the company wants to recoup that cash, they could sell existing ordinary shares on market. Their overall exposure to MWR remains the same as they now have the option to convert their notes. It's a good deal for the note holder. It was a great deal for MWR and shareholders when it was done because the conversion price was well above the sp at that time. The alternative would have been a standard capital raise for shares but the price would have been much lower than the current conversion price because the sp was much lower at that time.