PassionateIgnorance, I don't think many companies would want to lend money to a company such as PNP, with, essentially, shares of POET as security. That would be a very bad combo of an iffy borrower and risky security.

The reason many hold POET shares is for the very favorable risk/reward ratio - you have essentially removed much of the reward portion for Company B by giving Company A a buy back option, albeit at a higher price.

Company B would be much better off just buying POET stock.