Ann: $8 Million in Funding Secured, page-44

Let’s just play through the situation as it could arise very easily and profitable for Negma.
Let’s start with Negma starting to short MNS SP, one would think MNS SP naturally would drop and so would the 10 day VWAP. They may even trigger the odd stop loss, which would only play out to their advantage making their short position more profitable. Now unlike any other average shorter, Negma wouldn’t have to cover their short position by buying on market, because they would cover their short position simply with shares issued at the 8% discount.
The following month Negma can simply repeat the game at a lower SP and naturally when again it comes to covering their short position they would be issued an increased number of shares again at the 8% discount rate.
So it becomes quite clear and potentially very quickly where Negma is making their profit and where the whole story overall becomes quite dilutional as well, because the numbers of shares issued at the 8% discount rate would grow because of the falling SP.
Because of the falling SP, it would make it even more difficult for MNS to find alternative finance in the future. Anyway as alerted to and mentioned earlier, the whole thing looks, smells and quacks like “death spiral finance“! However with the financial situation Magnis finds itself in, what other options to keep the lights on are there?