very simple - your "investor" has two options - recieve the...

very simple - your "investor" has two options - recieve the interest (9% here - so it is definitely steeper than your normal housing loan - in case someone points that out, but way cheaper than the regular business loans that are always 12% +++ for junior companies with irregular revenues)

OR the investor can choose to convert it to equity IF certain boxes are ticked... in that case they lose out on the guaranteed returns that 9% interest would bring but they get GROWTH that a rising stock will bring...

OR

AB1 cannot pay the interest and the investor now has to convert it to equity and then force sell it on to the market and hope to get a better return... the last is always the worst case scenario and I have seen some con note holders have such damaging clause in their contracts that they even get control of the whole company leaving us almost with a mere 1-2% of the equity... in this case this is not a possibility AT ALL as the amount is too small for it to be damaging even if AB1 cannot pay interest... but just put it here to cover all the aspects of con notes...

hope this helps