Stoke chief executive, Jonathan Fuller, said: "We are looking for an injection of funds to finance the club for the forthcoming season."
The proposal will increase the club' s authorised share capital by £1m from £2,523,398, and Mr Gislason added: "The monies to be received will represent a considerable investment in the company and will assist the club in reaching its targets both on the field of play and financially.
"The directors are making the recommendations to the members because they believe the issue of unsecured convertible loan stock is in the best interests of the company.
"It is the view of the directors that the amount to be received, in the current climate, represents a fair amount for the loan stock to be issued."
The concern isn't debt - It's the fact that Stoke City is currently running at a loss, and this needs to be turned around.