Great explanation, I have a difficult time understanding convertible notes and this explains the real world very well. Just as the shares/warrants terms with Paulson, the convertible debt terms seems to be just as big of a shot yourself in the foot financing. I get that in order to raise cash the company has to give up something, but both of these methods really cost us share holders dearly. The real problem is that the company assumes the share price will be higher in the future but the funding sources are selling off what they can to walk the price down so they can accumulate even more shares in future raises. I can't imagine the mgmt. of cytodyn does not understand that these cash raises are the reason the SP is continually lower and that good progress can not overwhelm it to the upside as they hope. If only there was some way to get these note and warrant holders to want to hold the shares instead of dumping them. Or, we need a real source of volume buying on the open market to soak up the limited volume of selling.