actually, the funder is guaranteed the annualized return based on what price he is able to short the stock. That profit is locked in. Say he is only able to short 3 million shares at an average price of .12 and for 2 months. The annualized return is 120% on the $300,000 of the loan and then he receives the other $100,000 back with an 8% return. He also has Warrants to purchase 4.0 million shares at .25, which will be eventually adjusted downward to about .05 as MIMV continues to raise funds at lower prices.
So this funder isn't guaranteed any particular percent return like you claimed. The plan is for MIMV to release fluff PR's and the lender will short sell their 4 million shares and cross their fingers and hope to god that they recoup the 400K plus a little extra before the price drops below .10. Ok gotcha, sounds like a good plan