As far as I understand the debentures it is like this: the conversion price for the debenture is $8, that's why $500,000 was paid in 62,500 share. It is a fixed price and as far as I understand the terms there is nothing renegotiable.
The warrants have a conversion price of $10. Pope isn't allowed to wown more than 9,99% of the outstanding shares.
A qoute form last filing:
In August, 2009, the Company entered into a Letter Agreement with Pope Investments LLC (“Pope”), pursuant to which the Company issued 82,500 shares of common stock to Pope in lieu of payment of the $660,000 in cash interest that was due and payable to Pope with respect to November 2007 Debentures and the May 2008 Notes held by Pope. In exchange, Pope agreed to waive certain events of defaults (as defined
in the November 2007 Debentures and May 2008 Notes) that had occurred as a result of the Company’s failure to timely make interest payments on the November 2007 Debentures and May 2008 Notes that were due and payable on May 30, 2009, and agreed not to provide written notice to the Company with respect to the occurrence of either of such events of default.
In September 2009, the Company issued 62,500 shares of its common stock in connection with the conversion of $500,000 of May 2008 Convertible Debentures.
