Presumably these could be company employees who have been paid in these notes. Of course they will get the best deal in terms of shares if they sell when the price is at its lowest, as they then get more new shares for the face value of the note - in fact it's in their interest to convert them within a short space of time to supress the price further I suppose?

I wonder if the MMs compensate for these conversions where they know the reason for any subsequent sale (e.g. the employee has bills to pay, or wants to stay below the 4.99% holding limit) and thus don't reduce the price as much as they would do if they were "normal" sales?

The fact that those with the notes are opting for the conversion rather than retaining the 10% interest per annum on the note hopefully means that they expect the share price to outstrip this substantially (although of course it could mean they are getting something for their note before it becomes worthless if the company goes bust). Without knowing the proportion of new shares sold by the ex-note holder it's impossible to know of course (if indeed the notes are being converted to shares).