Death Spiral Financing ??
Death spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the companys stock to fall dramatically, which can lead to the companys ultimate downfall...As per News Release dated April 19, 2018, "...Greenstone $2-million (U.S.) convertible loan to Coro In addition to the Greenstone investment, Coro has signed a convertible loan agreement with Greenstone for a $2-million (U.S.) convertible loan to Coro at the corporate level to cover continuing working capital requirements, including Marimaca project costs and associated corporate costs. The convertible loan has a maturity date of the earlier of an equity raising by Coro of not less than $5-million (U.S.) and Jan. 30, 2019. The $2-million (U.S.) is convertible into common shares of Coro at a price equal to the greater of: 8.95 cents (the volume-weighted average price of the Coro shares over the five trading days prior to this announcement) and the Coro common share price of any equity raising by Coro of not less than $5-million (U.S.). The convertible loan will attract interest of 12 per cent for the first six months and 15-per-cent interest thereafter. The convertible loan agreement contains standard conditions and events of default."