Please explain Convertible Loan Facility at 4.5p20 Jul 2020 09:46
RNS 31 December 2019: "The loan notes are convertible into ordinary shares of the Company at the option of the relevant holder at 4.5 pence per Ordinary Share, representing a premium of 66% to the closing price of 2.7 pence per share on 27 December 2019 "
Does this mean that the lenders can choose to be awarded shares at any time/when the price goes above 4.5p? What would this mean for shareholders? Dilution? Other than providing cashflow when it was needed, is there any advantage to this (for shareholders?)