Ann: Disclosure Document, page-20

You'll find that this sort of financing has been around for a while. There is even at leat one other American financier with a base in Sydney that provides this sort of financing.
It's effectively a stand by arrangement to raise money by issuing more stock without the need to go through the cap raise process. The financier takes almost no risk as the company will give them collateral shares which they short sell to hedge their exposure. All they are doing is collecting a fee and probably don't know or care what the company really does.
Malone could probably get a better deal at the local pawn shop except that SKN doesn't have anything to pawn.
Meanwhile SKN trumpets it as $20m secured. It does so because it knows it can still fool some investors with grandiose headlines and it relies on them either not reading the details or not understanding what it really means.