The $20 million in funding for BMSN from Southridge is basically a put option. Meaning, Koos can force Southridge to buy XX amount of shares, up to $20 million or 9.99% of the total company stock. The price that Southridge buys at is determined by average price of (I think) the last 3 prices at market close within 10%. This ensures Southridge gets shares at a lower price and evens out the deal (nobody gives 20 million because they're generous), making it more likely they make money. From what I've read I believe these shares are restricted for a year.