Cornell Yorkville Clients

[stocktrader2222]

I dont get toxic financing, if they are giving lets say 40mill to a company and will get back 40million in stock at a discounted price, why would they short the stock? How would they make money this way?

Also how do the CD's work? They get paid interest, but if the stock hits a certain price it converts to stock for the financier? So the financier shorts the stock in an offshore account (how do they do this), to get the stock lower? Then how do they cover their shares to make the money on their short? But also, they will be getting a bunch of new shares at this low share price so they lose out on making any money there...so the shorting $$$ gain must be bigger than the original loan correct?