Interesting find, but seems like some points are not emphasized correctly.
According to Lorraine, The lawsuit has been refiled. It was originally kicked due to an administrative error by the court first, then the attorney. You need to read the complaint before you can actually comment on any of the substance because that case has nothing to do with the conversion, and everything to do with the massive fraud leading up to the conversion. The conversion in that case was compounded by the companies T/A, but DD would require to read the whole complaint in order to put surface facts into perspective.
All of the existing convertible notes have up to 135% pre-payment penalties, but only 2 have been converted out of 16 (how did that happen?). Sone of others have already been taken out. The two that have converted are subject to independent leak-out agreements, as well as the rest of them. Lorraine explained to me that the company needed to increase its public float, so this program is a responsible way to do that slowly. Lorraine explained it to me that since the company has gone out for traditional equity financing, that the remaining notes at the time of funding, will be retired upon closing. Up to that point, Auctus Fund is serving as a note take/out, liquidation agent by providing new money to pay off old, before those other notes have a chance to convert. That has the effect of rebooting the 6 month waiting period to age before the note can convert. This has been put in place until funding at which time I expect Lorraine has a plan for Auctus to convert its outstanding notes into the bigger deal. The company has seemingly done this several times already with Auctus, hence, after 16 convertible notes, 2 converted and under leak-outs, 7 paid off and retired, and 5 subject to the Auctus plan. That also explains the number of Auctus notes.
Seems she has that under control as well.
