If you understand how death spirals work, you also understand there are ways to mitigate them.
You mentioned the risk/reward as being the reason for financing this way, and banks not lending to them. Hello! Why do you think we refer to GNBT as 'speculative'. I think we are all in agreement on that.
The size of this deal is tiny. That's the first point in GNBT management knowing what they are doing. I also presume they have restricted or eliminated shorting. That would be another sign. None of us know this for sure at this point.
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