Yep, and in doing so, if I've understood correctly, the...

Yep, and in doing so, if I've understood correctly, the conversion into shares has also helped 'artificially '(?) lower debt on account of their face value being higher than the issue price? (i.e discount). So they increased debt by 27m issuing them, then cancelled out 44m at the face value

I think there was 5m shares not in escrow by the way (pg 23; other holders; no escrow). I had assumed these related to the convertible notes holders, since the accompanying note makes reference to interest in it (would be odd to attach to that group if not the note holders?) although maybe it was an even earlier round.

I think you've nailed the explanation anyways, just for some of us now it's over to reviewing as a learning exercise for future deals.