I assumed that there was a risk that the bulls on this stock...

I assumed that there was a risk that the bulls on this stock wouldn't appreciate my 'death spiral' reference, but facts are facts this is a similar instrument with the exception that there's a 3% mkt cap limit on monthly share issues.

It appears that most if not all have mis-interpreted the terms of this issue. PRR is NOT issuing shares at a premium.

Read carefully the following...."The price at which the loan is repayable in shares is the LESSER of:"

In any case the maximum issue price at which Springtree receive shares is 7.33c...so if the SP is trading at 12c for example they still get shares issued to them at 7.33c...they are protected in the event of a SP fall as they can receive shares at a 10% discount to the monthly VWAP.

Financiers such as Springtree (like Fortrend) tend the turnover/sell the shares that they are issued very quickly so as to avoid unnecessary market risk, so expect between 8m to 15m shares to get sold into the market each month from this arrangement.

If the PRR SP falls below 5.1c they will be limited on how much funding they can draw down on a monthly basis (ie. the maximum draw down will be less than $700k)

IMO this type of facility will (as a best case) cap the PRR SP at around the 9.5c level.

Anyone with $1m in the bank could provide this type of $25.5m funding facility.

Good luck to all