I think it may make some kind of sense......as I understand your theory, Asher may lend ECOS X% of the value of the company and the following could have happened:
The PPS and thereby the value of the entire company got below the limit to which Asher (or who it is) may lend the money, and therefore to get back below the limit of what the company owns Asher, Asher had to get some money return to lower the amount lent to the company.......and if the company cannot pay, the shareholders will. E.g. a thought example could be that Asher can only lend up to 10% of the company value. They therefore lend 200.000 USD to ECOS and this was no problem as long as the share price is 0.0036 or above, giving the company a total value of minimum 2,000,000 USD. As a guarantee for their loan, they may have gotten 1000 shares per USD lent. Now the PPS drops below 0.0036, e.g. 0.0030 and suddently Asher has lent ECOS above the limit, i.e. in my though example they would have lent ECOS 12% of the value of the company and therefore needs to sell a part of their shares to lower the loan from the 200,000 USD to 166.500 USD, which would be 10% of the company value at 0.0030. To get 33.500 USD, they would have to sell 33,500,000 shares, if they could get 0.0030 for the shares, but when dumping 33.5 mio shares onto the market, the stock goes further down and they will have to add more shares to cover the lower and lower dept they are allowed to have in the company. This would create a death spiral as they would have to pump more and more stocks into the market to cover their business and they would be able to do this without loosing money until their limit price, i.e. the number of shares they got as guarantee for their loan which in the though example would be 0.001 USD/share (1000 shares per 1 USD lent).
Or an alternative approach which would give the same result could be if ECOS needed some money to finalise some of the studies and had to lend these from Asher as it probably is not easy to find capital in todays market. Due to the limit in lending, ECOS (and thereby the share holders) would have to pay of a part of the debt first before the new loan can be released and the only way to do this is by selling the shares in the market. When this has been covered, Asher will stop selling the shares and life as we know it can go on.
These were my thoughts on how it works.....maybe worth 15 shares? ;)
AI
