Lets pretend convertible note debt is rocket science to many and...

Lets pretend convertible note debt is rocket science to many and they don't understand how to assess the competitiveness of debt rates because of the difficulty valuing the convertible aspect of the debt. And then you can explain to all of us, why in your words its very 'of course bad'?

Because 4% per annum will sound very good to many people. Though they will of course need to look at the additional 6% "admin fee" for the draw down, which completely blows that up.

I am pretty neutral on this. Its not entirely unexpected with OSX lack of clout in the market and their financial position. I am comfortable with it as a back up resource to its cash needs, should it need it. From my extrapolations on forward revenue growth and recently trimmed costs, they might just make it to positive cash flow without needing it (and more importantly this reduces the likelihood of another capital raise any time soon), but it will likely be very tight if indeed they do. The June-September sales figures released in October Appendix 4C should give better insight to that.