That is putting it to the extreme, and it not a question of "limited collateral", it is the potential toxicity/massive dilution for a small amount (4musd) in relation to for instance equity, assets, and Accounts receivable. The Company is squeezed with cash, and with a better financial planning this could have been avoided or reduced, and I think it is unfair for the Company to leverage the situation and put such a huge dilution-risk to the shareholders.
Let's get that 100musd loan, move on, and start discussing something else! :-)
Are you willing to lend out 4musd with limited collateral?