Convertible notes are basically you loaning the company money...

Convertible notes are basically you loaning the company money for three years.

In return you get get a good interest rate of 8% per annum.

Alternatively you cash them in early or at the end of the term for an 8% discount on the prevailing share price (20 day VWAP) capped at a minimum price of $0.40 and a maximum price of $1.20

If the share price rises you don’t get as many shares, but you still get them at a discount to the share price, and it is really good if the share price rises above $1.30 as then the maximum cap means the discount would be greater than 8%

If the share price was to jump to $1.60 then the notes would be converted at a 25% discount, ie $1.20.