question on convertible notes, page-2

announcement from may 2006.
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The directors of Universal Resources Limited (¡°Universal¡±) are pleased to announce the placement of an issue of Converting Notes (Notes) to raise A$22 million before costs. The three year Notes carry an interest coupon of 5% pa. The placement is subject to shareholder approval which will be sought at a general meeting of the company to be held in late June 2006.

The note has a 90 day non-conversion period from the date of issuance and thereafter, at any time prior to maturity, can be converted into ordinary shares in Universal at a conversion price of A$0.18 per share, representing a premium of approximately 20% over the 30 day VWAP prior to the company requesting a Trading Halt on 10 May. At maturity the note will automatically convert into ordinary share capital at a conversion price of A$0.18 per share or, if the share price is less than A$0.18, a price equal to the VWAP for Universal shares traded on the ASX over the five trading days prior to the maturity date.
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so it's 3 years note issued in may 2006. still have around 2 years to the maturity. and if sp stays below 18c, the price will be VWAP over the 5 days prior to the maturity.

even if it's a note which "has to" be converted into shares... it still doesn't make sense. why now? why not wait until the maturity while note holder can earn 5% interest and conversion price could be lower (or at least the same price)?