a) This appears to be “an option.” In other words, they are not...

a) This appears to be “an option.” In other words, they are not raising any money at this point. They also don’t have to pay the majority of the upfront costs to own this option unless the stock is above 75c.
b) The agreement allows GSW to set a floor. In other words, it does appear that the other firm can liquidate the borrowed shares, but that would only make sense if the stock was continuously trading above that minimum floor.
c) This arrangement only seems logical when a stock is moving higher on high volume and news. The cost of accessing this capital is roughly 2%, compared to the 5-8% for typical capital raises. Perhaps they never use it.