Hey bill,

You also forgot to quote these parts of the article:

"The price of the shares to be purchased pursuant to the ELOC is determined by taking the market price of the shares during the draw down period, less the applicable discount agreed upon between the purchaser and the company, and it is usually subject to a minimum price below which price no shares may be sold."

"The main advantage of an ELOC is that the company maintains control of timing, given that the company has the right, but not the obligation, to draw down and sell its shares at any time, whereas the purchaser has the obligation to buy the shares whatever the circumstances."

It is clear to anyone who understands what "toxic financing" is that SFMI's LOC does not fit the definition. Period.