If MC didn't want to do a capital raise at 40 cents to clear the...

If MC didn't want to do a capital raise at 40 cents to clear the debt when he had the chance with minimal dilution, didn't want to raise additional capital at 20 cents when the company was doing strategic placements with GXY and Jiangte, then I highly doubt he would do one at 8 cents.
having been a long term supporter of the management for quite a while now, this was something that I really don't understand for the longest time. Why did they choose to finance the project with 18% interest rate loans instead of doing it through cheap equity?
arrogance? Overconfidence? Or just simply stup*dity?