CVP does have reason to believe the stock price will rise, otherwise they wouldn't have entered into this financing agreement in the first place. Or they would have at the very least included in the agreement an option to convert prior to one year out if the PPS deteriorates past a certain point.
You're basically making out CVP to be a bunch of morons who entered into an agreement with a company that has no hope of survival. Look at the last quarterly financial statements and take notice of the NET PROFIT.
Even if a few investors short the stock, it doesn't mean the death of the company like you seem to imply with all this "toxic death spiral convertible" talk. It does play a role in manipulating the stock price in the short-term, but when a company such as Progressive Care has too many good things going for it, it won't have a material effect in the long run.