Great question Portfolio The pres below doesn't mention the year...

Great question Portfolio
The pres below doesn't mention the year 3 deal - so you might presume it will be repaid in cash as per a normal loan. However as a comfort the year 2 stock deal was VWAPPed.

From pg 22 of the pres 9/6/15.

Major shareholders, Mitchell Group and Washington H. Soul Pattinson & Company Limited (WHSP) will provide a secured
corporate lending facility of $8.5 million Proportions: Mitchell Group - $3.5 million, WHSP - $5 million
5 year term
10% interest rate
Loan facility secured against Nitro assets#
Interest on the loans for the first two years will be paid at the start of each year by the issue of Mitchell Services shares#
Year 1 interest paid in shares with an issue price of $0.0175; and
Year 2 interest paid in shares with an issue price equal to the volume weighted average price for the 30 trading days prior to the issue of the New Shares at the start of year 2

From page 29:

Debt facilities - $8.5 million The remainder of the Acquisition costs will be funded by way of debt financing in the amount of approximately $8.5 million provided by Mitchell Group2 and Soul Pattinson. It is proposed that the debt facilities provided by Mitchell Group and Soul Pattinson will be secured by a charge over the Nitro assets. It is also intended that interest on the loans for the first two years of the five year term will be paid by the issue to the lenders of further New Shares (with Year 1 interest paid in Shares with an issue price of $0.0175, and Year 2 interest paid in Shares with an issue price equal to the volume weighted average price for the 30 trading days prior to the issue of the Shares). Given that Mitchell Group is a related party of Mitchell Services, the security arrangements for the Mitchell Group loan and the issue of New Shares to satisfy interest payments on that loan are subject to shareholder approval.