They had convertible debt from a prior offering that didn't mature until 2017. They came to terms with some of the debt holders to convert early since the stock was well in the money (they converted at 12.77). Not unusual in fact I am pretty sure they even did something similar many years ago my first time as a shareholder.
That's why I was torn on how to describe it. Certainly, it's better to have the equity than debt, but the debt could have been reasonably expected to be converted anyway, assuming things didn't fall apart.
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