Great article on Equity Line of Credit. Of course nobody would think of shorting SFMI, right?



"Drawing down under the facility may have a negative impact on share price. A substantial number of shares of the company are sold at a discount pursuant to an ELOC. Existing shareholders therefore experience dilution in the context of a draw down, and the sale of the shares may have an adverse effect on share price. Any downward pressure on share price could encourage short sales by third parties, which could further contribute to any decline in share price."




http://www.fasken.com/en/the-equity-line-of-credit-a-financing-tool-that-is-gaining-ground-in-canada/