strato,the 5.5 million raised was NOT a normal capital raising....

strato,

the 5.5 million raised was NOT a normal capital raising. it was done via convertable notes which means that the investors are paid an agreed rate of interest + the guarantee of a capital return. they have the option to convert to shares up to an agreed point in time. convertable notes are generally used by companies with a poor reputation that struggle to raise capital via other means.

the noteholders carry much less risk than your average qtk shareholder. the company would have to go completely belly up for the noteholders to lose out.