convertible note

This stock came up in my scans. Question for more experienced holders. Per the quarterly:

In addition to the funds raised under the Rights Issue, the Company still has access to funds under the convertible loan facility it has in place with the SpringTree Special Opportunity Fund LP. Under this fund, CBio can access up to $12.45 million over a three year period until April 2013. As at 31 December, the Company can access up to $9.8 million over the remaining life of the facility. The Company elected the repay in cash each of the three $150,000 notes which matured during the December quarter.

Impressed they paid out the last three notes in cash. I suspect the dilution to SpringTree caused part of the rut in the share price from 40c to 15c from May 2010 to Sept 2010. Can anyone clarify if the company will be drawing down from SpringTree in coming months or will the money from the rights issue be enough to see them through? I won't touch it if SpringTree are getting cheapies.

If they are drawing money from the convertible note and repaying back in cash, they are effectively using expensive finance at 5% a month and really pointless if they already have the cash.