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An interesting example! My thought is it's a continuation from the engraving of the die and not a deliberate element of the design, the portrait is definitely Edward III. I've seen similar ones before, e.g. the below.
Superb portrait of the King on horse! This portrait is particularly impressive when well struck as it shows a three dimensional effect.
(And I have got to say that your photos are much better than the seller's!)
Progressing my Charles I halfcrown type collection, just landed:
Group IV Type 4
S. 2779 N. 2214 Hawkins 4 Bull 436/30 (this coin) wt 15.03g
Ex Emyr George Collection, bt Spink Auction 84 21/05/1991
Illustrated as the plate coin in The Halfcrowns of Charles I 436/30, page 377, Volume II
Moreoever, I wonder if we'll ever find out where the specimen sold in 1970 went. Irrespective of your opinion on coin grading services, a slab would at least make a tiny coin like this more conspicuous and easier to research for someone who might eventually inherit it.