$XERS - some thoughts on what is going on: From the video conf call, Paul mentioned that many of the converts had been calling him wanting Xers to convert the notes for shares. My gut tells me they were wanting this (desperately) because the company is doing much better than they had anticipated and they had taken large short positions as a hedge. With the data they saw, they knew Q3 and beyond was going to overperform and their short position was garbage and expensive to maintain due to interest. Sure, they may be covered down the road, but they would have to pay a ton of interest to maintain it. The only way out for them was to beg the company to do an exchange for what 4%. As Paul said, this is a huge win for the company. The company keeps the cash, doesn't have to pay interest, and the dilution was baked in. Also, now that a huge short position will be cleared up, the converts won't have such an interest/need in holding the SP down. They are now truly long.