Where does this stuff come from? What "toxic financing"? What "reverse split"?
It's very simple. Funding sources for startups do not like to see their capital used to retire pre-existing debt. They want all of their investment going into expenditures that move the business toward success.
ESCU is saying it will use the money to advance the company. It will negotiate deferred payment for old debt. That's the way it should be done in a startup.
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