Unfortunately, I have to disagree. I think (but I am not 100% certain) that the note payable to related party (i.e. from The Mann Group) is junior to the two senior convertible notes of 2013 and 2015. If the FDA does not approve, IMO, the intellectual property and patents do not have that much value and the proceed will go to paying the senior convertibles first leaving very little for the note payable to related party. Since that note still has a balance of $283 million, all remaining proceeds will go to recovery on that note. It does not matter if the note balance is larger, all proceeds after paying the senior convertibles will go to paying the note. So, his risk after swapping debt for shares is the same.

This does not change the fact that his interests are still mostly alligned with other shareholders.