The whole purpose reporting the breakdown of officers and directors in the 8k is to make a public disclosure that they are beneficially held. That doesn't stop them from selling.
It doesn't matter is they don't sell because once they convert those shares which will be any day now, they will be added to the outstanding shares which will balloon from 6 million to 221 million shares and the market cap will balloon from $15 million to $550 million.