You want me to explain how shorting works? Maybe you will tell me that the lender can't short before a year is up? Maybe you will tell me that the warrants cannot be sold for a year and that it is too risky for a company to have that exposure for a year?
I got a question for you. What is the effective date of the agreement you presented? Here is another... when can the lender get the certificates from the warrant? One more... can a lender submit certificates to cover a short position even though it hasn't been a year? What happens if the company defaults?
I got more. Why does the lender only want stock and not cash to repay the loan? Would that be because the stock is going to $50/share or more likely .0001? How does a lender make money when the stock goes to .0001?