So a key investor willing to convert debt at a premium. This is...

So a key investor willing to convert debt at a premium. This is a positive in any language. As a shareholder I have no issue accepting this. We have a small spec company that needs financial strength to pursue its goals, which it appears to be kicking and I think this conversion foreshadows a bigger corporate event.
There may be some good reasons to get the debt off the books and provide a far cleaner balance sheet. This could be because there are other interested parties who want to get in on the action but do not like the debt overhang.