That is a good question Jimmi,

Whether they have to announce it or not due to the fact they are converting I don't know but if they have been buying all along and the conversion would put them above 5% ownership then they would have to report this to the SEC whether they want to or not.

If it is still not above 5% you still have to wonder if they have to report it since KRY has already stated that they are a "potential" investor. When does "potential" become an investor? Was it when they already gave KRY the loan? Or is it when they convert the shares? Or none of the above because they can still call KRY on the loan June 30 so that would make them a non investor and just a loan instrument.