The terms of the loan stipulate that the CEO has the right to pay off the notes up to their payable date (Asher must abide by those terms!). Asher get to convert at 60% discount, but they don't get to sell into the market until the notes are "due". Asher at al have already covered their butts here via the 60% discount and they've been doing this long enough to not only retrieve their principal, but also a nice % profit. It's mind boggling some of the profit margins these toxic funders reap (have seen 500-1000% profit margins).
Edit: do some funders fail to retrieve their full principal...sure, but more often than not the toxic funders come out ahead.