Ann: Fully Underwritten $40M Placement & Non-Underwritten SPP, page-5

discount will be determined at the assistance of the brokerage firm. They have a number of means of determining the likelihood of a successful raise re price. they would've tested the waters and understood that they would not have a successful raise if it weren't at such a significant discount.

in simple terms: the shitter the company or position the company is in. the bigger discount the raise will be in exchange for providing the capital. (incentivise sophs for taking the $ risk)

edit: sell sentiment accidentally out of habit clicked hold.