The way I read it, it's the interest on convertible notes being taken in shares in lieu of interest. As mentioned by many on HC, the notes holders should convert to shares so that they have skin in the game, instead of taking interest payments from time to time. Looks like this is a bit of a hybrid, where the interest is not being taken, but shares are given, while they still hold the notes. At only $1600 worth of shares, I'm guessing that's not all note holders?? I'm new at this game, and never sure how to read those appendix 2A's and Cleansing Statement's as to who is at the receiving end of the issue of shares.
