I think some do not understand the mechanism of notes and conversion, or I am missing something myself.
To make things simple:
Entity A lends money to entity B with let us say 10% interest.
Entity B is a company like ECIG. Entity A is a private firm or rich individual or you name it whatever you want.
Entity B can pay back with cash or with shares to entity A.
Entity B choose to pay with shares, and promises @ discount pps based on volume averages.
The discount is advantageous only if entity A chooses to hold its shares of B. Because for an amount of money X, entity A can get more shares than me with the same amount of money X. Plus, the lower the pps of B, the more shares of entity B entity entity A can get in payment. Here is the catch. If entity A chooses not to hold it shares, it will claim as many shares as needed to recoup his investment plus interest. In this scenario the pps of entity B does not matter to entity A. All it needs is as many shares as sufficient to dump in market to recoup his initial X investment + interest. Therefore if Entity A does not want to hold shares of entity B, it has no interest shorting/bringing down the pps of A.
long and strong ECIG