Good question. Trding, I'll await your informed reply as well.

In the meantime, I think the short version is that the noteholders can request monthly redemptions in limited dollar amounts (e.g., $200,000/month - don't know the real number).

The redemption price is (these days) 85% of the lowest close for the prior 20 trading days.

So, if the lowest close in the last 20 days was .40, then the noteholders get to redeem the redemption amount (e.g., $200,000) at a redemption price of $0.34.

So, with a redemption price of $0.34, the redemption amount (in shares) is 588,235 shares (i.e., $200,000/$0.34 = 588,235).

With a redemption price of $0.40, for example, the redemption amount (in shares) is 500,000 (i.e., $200,000/$0.40 = 500,000).

You can start to see pretty quickly how much the closing price of this stock matters for purposes of the convertible notes, and how the convertible note holder selling into limited volume with no news becomes a self-fulfilling prophecy in terms of decreasing SP.

Lower close = lower redemption price = noteholders can sell into the market even lower and still make profit, which results in a lower close (and a lower redemption price for the noteholders)

It's imperative to take out those notes ASAP.