Painted Pony Pete Ltd PDPYF

I'm confused

[coolandnice]

Assuming we don't explode tomorrow the initial coversion price will be $5.60.

I'm confused by this statement:   " Beginning in February 2020, Painted Pony will have the right to convert the Debentures into Common Shares at the conversion price where average trading prices exceed 140% of the conversion price."

Does this conversion happen at the initial conversion price of $5.60 if the shares exceed 140% of $5.6 or $7.84?    Or is the conversion price reset to $7.84.   Why do they say "initial conversion price"?    Seems poorly worded to me.

Still think this stock is significantly undervalued considering the UGR acquisition reduced the debt to cash flow ratio by 15-20%, they hit all metrics with today's press release, and this debenture deal is really just a debt swap with some moderate potential dilution in 2020.

See:  https://www.google.ca/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1502334297176&chddm=98141&chls=IntervalBasedLine&cmpto=TSE:BIR;TSE:CR&cmptdms=0;0&q=TSE:PONY&ntsp=0&ei=O82LWfGVMoKEjAHOuICwBQ