This is the highly likely outcome. There's the chance that neither Dupont or Cleveland Clinic don't want to run trials and the lenders behind the company think that their best avenue is to return the cash as to get made whole as much as possible but most likely they will find a path to keep the doors open. The whole convertible dilution and eventually a reverse split is all very likely in the future as they await any type of hopeful trial results of future trials. As shareholder's most would likely prefer the quick cash but the company is set up as a treatment for CNS diseases so that's likely what they will chose to focus on. I say 80% chance it plays out exactly as your post says. 20% at the most that they refund the cash if the data mining from this trial shows nothing consequential.
They could pay back the BS preferred convertible deal in cash, to allow this scheme to move forward, is to transfer the assets of the company over to the preferred shareholders at substantially less than fire sale prices.
The company has $24 million in cash other than the preferred money that can be paid back. The company has enough cash to move forward, the convert into dirt cheap shares strategy is for a company that is about to go under. What you've suggested is not a business strategy it is a scheme to steal the company!!!
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