Investment firms do convertible notes (at discount to pps) all the time in the pinks, most knowing full well that the company might not be able to make a go of it, or that it is a stock selling scheme from the git go. They are an intrical part of the stock selling process.
WTCT, for example has used Big Apple as their stock selling partner in the past. Dbar probably isn't a lot different...hopefully for them, they won't get so aggressive on selling the converted shares before "their time" with illegal Attorney letters to get the legends removed so they can sell them early.
WTCT lives in the pinks and that is how bidness is done.