I agree this company will need capital to keep the doors open. My point on the conversions is this is no better a then a Asher play. The only difference is that the insiders are running it instead of an outside equity private firm.
I am not going to explain to you why insiders would want the stock price down before the conversion price is set. I will let you figure that one out.
Unless the share structure changes this is easy money in my opinion.