<<The notes are backed by Azasite royalties>>
Sure, but what are the royalties? This isn't Avastin, with a proven royalty stream.
The equity, prior to the deal, owned 100% of the royalties yet the market cap is around $60 million (now about $69 milliion). I may be wrong, but the loan is nonrecourse, secured only by royalties from Azasite in US and Canada, not in other countries, and not (I may be wrong here) subsequent variations of AZAsite (e.g., AzaSite Plus™, AzaSite Otic™ and AzaSite Xtra™). You would think that monetizing a part of the company at $50 million suggests that the whole is worth considerably more, although perhaps Mr. Efficient Market is saying the rest is not worth much.
Disclosure -- I own some of this woofer, sold about half for a tax loss at the end of the year, still hold what is in my IRA's.