Let's say I own a business and I need a loan of 100k. You are in...

Let's say I own a business and I need a loan of 100k.

You are in the business of loaning money.

I can't get a loan anywhere else because my financials are extremely high risk. Therefore you offer me a loan of the 100k I'm after, but take a percentage of shares in the company as collateral due to the high risk nature. Not to mention the interest rate you offer me is already at loan shark equivalency.

When I'm extremely close to paying off my loan or potentially already have, what reason do you have to hold your collateral shares for? You made the money off the interest rate, which is the nature of your business. The fact you have your loan paid off + shares is just a bonus. So you may as well dump all your shares. Once you've made the decision you no longer need to hold shares, you probably want to dump them quickly too. What better time than on the back of an announcement where you know you're likely to encounter more buyers while getting a decent price for your shares?

It doesn't matter what AGO's potential is, if your business is lending money, you lend money. You don't care about playing the share market game. That involves having a completely different business structure and different staff members. If you make great returns on lending money, why enter the higher risk market of owning shares? The company is better off dumping shares and using that money for other loans than they are to speculate in the market.

That's just one scenario, I think with that basic scenario you should be able to come up with at least 10 other reasons for lenders to sell shares which don't mean a single bad thing about AGO. Without knowing the full T&C's in regards to the loan agreement, the lenders may actually be worse off if they hold shares past the debt being paid, i.e. there may be a buy back clause with a set share price that is lower than the current share price.

Someone please correct me if I'm off the mark here. I only bought into AGO two weeks ago and can't say I know everything about them.