after little more poking inside what I determined is that the noteholders last converted on May 8th in the price range of $0.006. It is very possible that they may not convert now as they know this can move up pretty fast. So they can take the $0.0035 as the last 10 days low and sell at much higher like above a penny.
Tomorrow will be the tell-tale sign. If it doesn't go down tomorrow then I say it goes above a penny before they sell.