They get the shares at an 20% discount
Each payment will be convertible at eighty percent of the lowest closing best bid prices of our common stock for the ten trading days prior to the payment due date. The maturity date of the note remains the same. As of March 5, 2008, we owed $632,500 on the note.
Did they ask any of the existing shareholders if this deal was ok, I don't know no one asked me