They had a rights issue with the option rights which was...

They had a rights issue with the option rights which was basically option 1. It raised roughly $1.2M and was well received.

They issued 2 notes since and raised a bit short of $1M by my calculation.

They have issued more options and shares (option 1 again I assume) raising a bit more.

Option 2 gets about $500k a time and money is available immediately. Rights issues take many weeks to organise which is no good if you need to pay a bill tomorrow. Greg made it very clear many months ago that he had negotiated terms with creditors. I would assume that those terms must be met and/or changes negotiated.

I am not aware of any "sinister approach to existing shareholders". Greg has been straight with stating how KBL needs to raise cash to payout overdue creditors. My thought is he did not recognise that the notes would result in such dilution and SP drop. I think he feels it now.