The note holder's note was completed when the stock was at .035 cents on the bid.
However, converting a note and SELLING all the shares are two separate incidences.
Depending on the size of the last conversion, this will determine how many shares they still have left to sell into the market.
Also, there is a distinct lag of time between when shares are converted, issued and delivered and when those shares are deposited, cleared and are available for sale.