They can not convert until May 31st I believe so it can't happen until at least then. But let's do some quick math on their $2.5M conversion.

If they convert at .50 they get:

$2,500,000/.50=5,000,000 shares

If they convert at .20, they get:

$2,5000,000/.20=12,500,000 shares

So it is easy to see the reward by tanking the price prior to conversion. Then if they run it up after the conversion and dump, they make a tidy quick profit. And if they decide not to convert, they can ask for repayment which we all know, we don't have the cash. So it will be interesting to see how this investor pans out. They could either help us immensley or really drive the stake in us by asking for repayment.

I have wondered if this investor is the same as our PP investor back in early 2006. It would be beneficial to them to see to it that we continue to exist through arbitration so that they can recoup their $30M investment that they sunk in to KRY. What is a $2.5M investment on top of $30M? Not much. But on the other hand, would you throw good money after bad? Tough call. Just a random thought on my end.