The discount is even higher than 35% if you go by the closing price. Per the Contracts they are using the http://www.nasdaq.com/symbol/simh/historical VWAP All principal and accrued interest on the Debentures is convertible into shares of the Company’s common stock at the election of the holder thereof at any time at a conversion price equal to 65% of the lowest traded volume weighted average price (“VWAP”) during the 10 trading days prior to conversion. Imo the Discount will be likely in the reach of 50-60% if not higher... But yeas to keep it simple go with the 35% ;-)