Ann: Market Update, page-153

Tech ..
My comments .. and thoughts on this .. are in blue .
As far as my knowledge goes, CST Capital still have around 41 Million shares that they can convert @ 0.035 which equates to $1.435 million AUD...spot rate around 0.67 US equates to around $961,000 USD...basically clearing our loan of $2.850 Million USD.
I don't agree they can convert at 0.035. That conversion price was for only the previous two conversions (30/9 and 22/10/19), and they got that because of the cheeky VWAP they managed to manipulate obtain from the market. For subsequent conversions CST would need to send a conversion notice and the subsequent VWAP would apply as per terms below:
---- 92% of the average of 5 daily VWAPs3 selected by the Investor from any of the 20 trading days on which Shares were actually traded on the ASX prior to the issue of the relevant Conversion Notice
The only way you could term the collateral shares remaining (20 Million) as debt , is if we breach the agreement, they are gifted them, but they can convert them by using the agreed formula, hence, paying us around 1 Million AUD or Brainchip can legally take them back and cancel them off the register, as the Con Note would have either been paid by Brainchip or the scenario above had taken place.