So, is this some of the note holders selling and converting? In...

So, is this some of the note holders selling and converting?
In itself, that's fair enough. When the market can stand it, it makes sense to sell some stock and convert notes at a cheaper level. Also, assuming that this is the case, they are close enough to the company to be offered a placement if that should be on the cards.
Either way, the company is saving cash (converted notes aren't repaid) or raising cash from somebody who has just made a profit. Effectively, the retail punters / day traders are partially funding the company (albeit unwittingly in many cases), but if the story is sound, then this should not have a lasting negative effect on share price.
I will say one thing though, whilst the convertible note funding of the company for the last 12 - 18 months may have been necessary, I think that recent developments possibly put the company in a different "space", and that this type of funding might be replaced with more traditional funding (including willing retail shareholders).
Just a thought.