Supatcha Resources Inc. (SAEI)

[snow]

From quarterly report:

b) "On April 7, 2010, the Company announced the execution of an agreement with Melco Investments, Ltd. (“MIL”), providing for a $10,000,000 financing. This financing is in the form of a convertible debenture with terms stipulating an interest rate of 8% and a loan repayment term of 24 months from the date of execution of the agreement, by way of cash or through the conversion of shares of the Company’s stock. The repayment terms of the financing are amenable to the Company’s property development schedule and to future financings plans to retire the debt."

There is no information here on the terms of the conversion. I read in a post that the pricing of the shares in a coversion was more than two dollars. Is that so much nonsense? Can the convertible debenture lead to a lot of dilution?