My take: If Joe had raised this thru Oasis, it would have cost ~4.65 MM shares, by my approximation.
As it is, it cost ~1.61MM shares + repayment of the loan minus the exercise $ from the warrants (don’t have that in front of me right now).
So, if you’re Joe, and you think you’re close to the finish line w the IND, which hopefully triggers the successful and lucrative IPO, which enables you to pay off the loan at 110% or even 105% of principal… maybe that turns out to be a smart move.
Not saying it will work out that way, but maybe this is a simple bridge loan.
It may not have the world’s most favorable terms, but I don’t quite see it as toxic funding either.
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