I don't know if this is a bad thing or a good. I guess it can be good source of financing but more dilution of 4.333 million shares if converted. The market seems to think it's good or atleast ok so far

Any inputs will be appreciated.

thanks

MedMira Reaches Funding Agreement to Enable US Market Expansion

    HALIFAX, Aug. 15 /CNW/ - MedMira Inc., ("MedMira") (TSX Venture: MIR,
NASDAQ: MMIRF), a developer and marketer of rapid diagnostics, announces today
that it has entered in to an agreement in principal with an investor for the
issuance of a CDN $650,000 convertible debenture. Under the terms of the
agreement, the debenture will bear interest of 9% per annum and will mature
four years from the date of close. The debenture is convertible in whole or in
part into common shares of MedMira at $0.15 per share during the first two
years. The conversion price will increase by 10% in year three and increase by
an additional 10% in year four. This agreement is subject to approval of the
TSX.
    This investment will enable MedMira to fuel various growth-centered
activities in US market, including expansion of the Company's product
offering. MedMira will be pursuing regulatory approvals for new rapid tests
for sexually transmitted diseases as well as advancements in the Reveal rapid
HIV test currently being sold in this market.
    "This investment will enable MedMira to move forward in the regulatory
approval process for our new line of STD rapid tests as well as bring
additional advancements to our already successful Reveal rapid HIV tests in
the US market," said Hermes Chan, president and CEO of MedMira. "The US is a
key growth market for MedMira and bringing new products forward in an advanced
healthcare system such as US positions us for further growth in international
markets, with FDA approved products in our portfolio."