Or it is like this. The lender assume that SIAF can't repay the loan and the lender then knows that SIAF has to sell shares (dilution) to pay of the loan. What happens now is that the share price goes down even more and the lender has to buy the shares and SIAF pays the money back to the lender. But share holders lose.
Or SIAF can't pay back so they offere shares instead of money but spice it up a bit with a few more shares.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.