My understanding is that it provides a safety net for unforeseen conditions.

Because they are a small company and do not have deep pockets, they need something to rely on if something unpredictable happened.

Primarily, I believe this is just protection against overages on Algar.

They have it in place now so that they won't have to scramble to come up with money in the future.

Hopefully, they will not need to utilize any of this money.