"As such Signal Bay has been able to secure a $3M mezzanine financing commitment from two institutional investors. These debenture financing agreements have been structured to provide Signal Bay the capital it needs to expand into these markets while minimizing shareholder impact."
Well, that's what the proposed R/S is all about, if I read it correctly. The CEO thinks a new share structure will help secure more conventional financing. Whether you agree with him or believe him is up to each investor, but conventional financing is the stated goal.