I'm very anxious to see how many shares they have converted since the last Q. They are making money on this either on the long side or the short side, just converting & selling is merely getting their investment back and the 10% interest the debenture is paying is nothing to them. Heck, they could have issued credit cards and made more than 10% and with a lot less risk, IMO. They can't hold more than about 4.5 million at any one time (no more than 4.99% of the O/S) - that's in the agreement plus they would be in violation of SEC rules for not filing a 13D or 13G for going over 5%.
If they are sitting on 4.5 million shares right now, at some point they need a spike to sell, make money, & start all over again with the next batch - lather, rinse, & repeat. A cynical person, who may have followed these situations in BB stocks for awhile, might surmise that the companies will be quiet while the holders convert & accumulate with the falling stock price & then start pumping out PR's when it's time for them to actually sell. Of course, that has not happened as yet so what gives?