royalties

Does anyone know what the plan is to avoid paying a 7.5% royalty on all company revenues? That is gross, not net. On top of all the other costs and conditions of the funding it is a lot. Is there a plan in place I haven't heard of to open a second plant in addition to kurnool which Magnas royalty clause won't apply to?

Also, this may be a stupid question but I feel like I have to ask in case there is something I'm missing. Why would Magna convert 1cent of its debt at a 200% premium? Why not just demand payment in cash and buy twice as many at market price?