grant of options to cim

I'd like to know what other ACE shareholders think about the recent grant of options to the CIM Special Situations Fund. It seems that the option to subscribe for $750,000 worth of shares at the lower of 20 cents or a 20% discount to a share placement price is an extraordinarily generous consideration to give in return for extending a $750,000 loan for 12 months. To me, this kind of deal smells of desperation, signalling that ACE is not generating sufficient revenue to support the business. Not a good sign, when we had been told that a maiden profit was imminent. Special treatment for institutional shareholders at the expense of minorities is never pretty to behold, but is more irritating when the company has revised profit guidance.

What do you think?