Try to look at this rationally; $10m (actually just $6m right now, $4m later) is not a large amount relative to the $30m they just raised in an offering, and what they will need going forward, so ask yourself this; why would Wotton put so much on the line for such a relatively small amount? Wotton is not a gambler like the prior CEO, so it doesn't make much sense. Here's my thoughts:
Wotton is supremely confident of the trials going forward, and this bank loan serves 2 purposes; (1) provides a degree of legitimacy and much-needed credibility when Ocata can get a loan from an established respected bank instead of resorting to a toxic financing company, and (2) bridging finance in the short term to provide a bit of breathing room to get Phase II underway and along as far as the first interim results.
If I recall correctly, one of the terms of the loan is that Ocata must have $50m in cash or cash equivalents at a specific date, which I think was late 2016(?).. now why would anyone take a $10m loan if you thought you were going to have $50m in assets at a specific time in the near future - 5 times the value of the loan? That seems more than just a little strange. What that tells me is that Wotton believes that by that stage he will have interim Phase II results that will send the market cap into the stratosphere. The loan would help Ocata get to that point, and again, help provide some much-needed credibility and legitimacy to the company in the short term.
If Phase II fails, then it really doesn't matter - it's over anyway, bank loan or no bank loan.
