There is considerable confusion about the terms of the Convertible Debentures ("CDs"), and some serious misundertanding of what is exacty what with the CDs.  I'm going to try to clarify the terms of the CD's once again, subject to whoever would like taking a shot at my interpretation.  Here are the terms as rather clearly spelled out in Poet's Sedar Filing last April:

"The Convertible Debentures will bear interest at a rate of 12.0%, payable monthly in arrears, and mature twenty-four (24) months following the date of issue. The principal amount of Convertible Debentures outstanding will be convertible, in whole or in part, at the sole discretion of the holder, into units of the Company (“Units”) at any time on or after November 1, 2019 at a price of C$0.40 per Unit. Each Unit is comprised of one common share and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one common share of the Company at a price of C$0.50 per share at any time on or prior to forty-eight (48) months following the date of issue. Holders of Convertible Debentures will have the option to cause the Company to redeem the outstanding principal amount of such Convertible Debentures at par following the completion of the DenseLight sale." 

Summarizing:

The CDs, paying 12% per year (1% per month, payable monthly), mature 24 months after issue.

The CD's can be converted at the holder's discrertion, into Units of the Company after November 1, 2019, at a price of C$0.40 per UNIT (not per share).  

A Unit is comprised of one share of common stock and one warrant, which warrant entitles the holder of same to buy a share of common stock at C$0.50 for a period of four years following the date of issue. 

A holder of a CD can force Poet to redeem the debenture at par (pay back the principal amount and any outstanding interest) after the Denselight sale CLOSES (not is signed, but closes).

Analysis:

The number C$0.40 has been used here an awful lot in the past few months.  That number, IMO, is a red herring, but if you hear it often enough, it becomes gospel and Poet lore.   Such number would be key if the only thing a CD holder got upon conversion was a share of POET stock, but that is not the case.  What the CD holder does get is a share of common, plus the warrant.

How much is a warrant to buy POET stock at C$0.50 per share for four years from the issuance of the warrant worth?  Certainly more than zero.  And, further it would depend on the price of the stock and whatever the status of the company is at the time of exersize. Those last two items are unknowable for now.  For example, if the share price were C$0.35 would you exercise?  I would, if I thought the warrant was worth more than C$0.05.  If I thought the warrant was worth C$0.15, then I would surely exercise, cuz I'd be getting C$0.50 worth of stuff (a share worth .35 and a warrant worth .15).

That's why I have said many times that the CD is a great deal for Poet investors.  If you took a poll here as to what they would pay today for such a warrant, I believe the answer would be north of C$0.15; in fact, given the what our own techies tell us, and the actions of the company tell us and the actions to date of the Consortium tell us, I would estimate C$.20 for the warrant, as you can buy double the number of warrants at C$0.20 than you can shares for C$0.40.

But then, let's be conservative and say the warrant is only worth C$0.10, okay, that means the CD offering is valuing the stock at C$0.30. In other words, the C$0.40 price for the Unit is broken up into .10 for the warrant and the remaining .30 for the share of common stock.