It’s just stupid is what it is. This investor is seemingly betting that a company that has lost millions per quarter with iron-like consistency will generate 5M over the next 18 months, and if they’re right they get 9%? 450K on 5M? How much do you think they’d have to invest in equity to make 450K if the company had such a dramatic turnaround? 100k?
This is the dumbest piece of financing I have ever heard of. There HAS to be something missing from the information provided. No one is this dumb.