That line just means that if the share price went up, St George would be given no less than 18 million shares.
They have already received 25 million shares... more than the 18 million minimum.
GIGL still owes 132k which converted out at the share price from the last two months would be 1 million - 3 million. Call it 5 million shares just to be safe. With the volume this stock has seen.. 5 million shares would be absorbed with minimum issue.
The stock price has fallen because it was shorted, and constant bashing has scared people into selling. Yesterday this fell from the 8's to 7's because someone got scared and dumped 1 million shares onto the bid.
Add up the volume over month of march.. more than enough volume to absorb 5 million shares no problem.
If the company wanted to dump shares.. they could have raised a ton of money by dumping at .25 but they didn't.
Maybe St George is trying to drop the price as low as they can so they can get a better conversion price.. then they will let the price go back up. Very common on the OTC and easy to do with low float stocks. Scare a few investors into selling and watch the price fall.
News 
Market Data 
Discover 
