Ah yes, but we're talking about the series B. And there is a PR from September 2012 that talks about adjusting the value and conversion price at that time, so this right must be part of that series.
if you thought about it you'll discover that it's a genius way to force them to slow down their conversions and selling their shares as if they continue in their act they will have only 0.002 value per share vs $2(although last time I checked it was $1) if the company had to dissolve as a result of their act of selling their shares.