I'll re-post this from a response I made in an earlier thread. There are a few others that have already seen it:

"You do have this wrong.

There are three possibilities:

1) The floor as set by $4.84
2) Any price in between $4.84 & 10.63. This is signified in the following statement:

“assuming the 20-day volume weighted average price of our common shares for the period commencing on the thirtieth calendar day after the earlier...[x, y]….is less than the conversion price [10.63]then in effect”

THEN,

“the conversion price of the convertible notes are subject to further adjustment….to the greater of such 20-day volume weighted average price and $4.835 (as adjusted for any share dividend, share split, share combination, reclassification or similar transaction)”

Here are the important words: TO THE GREATER OF 4.85 and the 20 day volume weighted average ---IF--- said average is LOWER than 10.63. If it’s higher than we have the third option:

3) 10.63 ;)

p.s:
Very important  volume weighted average. If we are at 10 (ex.) for 15 days on 500k volume, then a monster announcement takes us to 12.50 for last 5 days on 2 mil each, then we are above 10.63. Just in case ppl didn’t understand the concept of weighted averages.

In this case the volume weighted average would be:

Total volume = 15*500k + 5*2000K = 17500K

Weights are expressed as %ages of total:

The $10 weight is thus = 7.5/17.5 = 43%
The $12.50 weight is = 10/17.5 = 57%

20 day vol. weighted avg, = 10.00(.43) + 12.50(.57)
= 11.42

Therefore, in this case the conversion would still be 10.63 since it is higher."


Hope that helps Darth ;)