If the company was already shorting, or even if they do it now, they have no guaranteee of getting discounted shares- in fact, even if they get the opportunity to buy LOC shares they have to buy them at the 15 day average, which if their shorting had been effective, would be higher than the present price. You need to think this through and understand it. Toxic financing depends on the "financier" knowing that they will have assured access to discounted shares (and I don't mean 3% discounted) in a quantity at least equal to the number of shares they intend to short. Centurion doesn't have guaranteed access to ANY shares, much less discounted ones, and they have no control over the price in effect when SFMI chooses to exercise whatever fraction of the loan they decide on. Go back and read my original post on this- it's all in there.