If Tony continues with dilution post split then there will be no one in the market willing to buy the converted CDs when they hit the float. He needs new investors to obsorb the inrease in o/s when the CDs start converting again. Now with their reputation for massive dilution and lack of PRs promoting the Company, anyone doing 5 minutes of DD are going to realise that this company is not a good investment, especially when they realise their debt structure.
So if Tony is looking for new bag holders then he is going to have real problem. I reckon if he allows the convertion of even 50 million shares, this stock will hit .001 in a matter of days and back to .0001 if he converts more.
Maybe if you speak with him again, you should point out that we are aware of this.