Right, Dash, normally you'd be right about the increased cash to the company, but I don't think the company gets any immediate money under Guernsey's theory of the debenture holders converting into the stock.  And, of course, if you're a debenture holder, why convert other than to sell the stock and hold the warrant as long as possible.  Also, the company gets to remove from its balance sheet a debt corresponding to the amount of the debentures converted.

It's late, I'm a bit tired, please comment if the above is incorrect.