Ann: New strategic shareholder, page-65

its definitely a good thing that the are escrowed so there is no chance of them dumping out in the short term.

I don't really see that they are gambling with the $5 million though. They already advanced it in November last year. its not a fresh $5 million. They just needed to make a decision whether they either keep their security in place and increase their advance to $15 million as per the original agreement OR renegotiate and take the shares as repayment and release themselves from further financing.

They seem to have decided on the second course of action.