Looks like the company needed some finance a few years ago . The...

Looks like the company needed some finance a few years ago .
The MD loaned the company money of $450k , with a signed note as his security document .
When the loan fell due it had a clause it which gave the note holder (The MD) the option to have his loan payed back at the face value of the note or the MDs option for the note to be converted (reason for the name convertable note ) at a price per share determined when the loan was taken out in this case $0.0377 so 0.0377 * 13 =$450,000 worth of shares issued to the MD now .