Ann: Update on Heart Failure Trial and Funding of Operations-MSB.AX, page-3

So they're going to hack back spending on everything else to accommodate funding the CHF trial until Q1 2017, and they've got a financing facility with these terms:

Key Terms of the Equity Facility Agreement The Company has entered into an equity facility with Kentgrove Capital which may be used by Mesoblast to meet additional funding requirements over the next three years, as they arise.​

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1. Equity facility for up to $A60 million available to be used over 18 months, with Mesoblast having the option to increase the facility to A$120 million over 36 months.​

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2. For each placement, Mesoblast determines when the placement occurs, the placement period, the maximum amount of the placement, and the minimum share issue price.​

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3. For each placement, Mesoblast will receive funds from Kentgrove Capital via the issue of shares at a volume weighted average price (VWAP) based on the sale of Mesoblast shares by Kentgrove Capital over the placement period less 4.5%, which cannot be less than the minimum issue price determined by Mesoblast. ​

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4. The issuance of shares under the facility will be made in compliance with Mesoblast’s available placement capacity.​

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5. Kentgrove Capital will be granted 1,500,000 incentive rights with a three year exercise period at an exercise price equivalent to 200% of the average daily VWAP of Mesoblast shares sold on-market on ASX during the 10 trading days before the date of the facility.​

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6. Mesoblast may terminate the facility on 14 days’ notice. Kentgrove Capital may only terminate the facility in certain limited circumstances, such as a material breach of the facility by Mesoblast which is not remedied.​

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So Kentgrove are going to smash out stock on market for MSB then get issued stock at a 4.5% discount - it's not even at the market!!