Here's a snippet for you as well: Restricted securities are securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer. Investors typically receive restricted securities through private placement offerings, Regulation D offerings, employee stock benefit plans, as compensation for professional services, or in exchange for providing "seed money" or start-up capital to the company.
Note holders shares are unregistered shares, they have to have an exemption to sell the shares. They use Rule 144.
Here's a snippet for you as well: Restricted securities are securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer. Investors typically receive restricted securities through private placement offerings, Regulation D offerings, employee stock benefit plans, as compensation for professional services, or in exchange for providing "seed money" or start-up capital to the company. Rule 144(a)(3) identifies what sales produce restricted securities.
Shares from conversions are restricted shares. And you don't see conversions because the note holders don't have to file when they convert. You will never see it. Just go compare the amount of debt left on the notes compared to past filings.
Also, with what cash are they going to pay the debt back with?