And, in addition to the point you make, Millennium can easily short against their "position" and if the stock drops they make more money beyond their 2%!
Then, if VAPH does not repay Millennium because the stock drops (it will drop if Millennium is shorting "little by little" and Millennium does not need to borrow stock in order to short), Millennium can "re-do" the deal and take out a large chunk of equity in VAPH and other "cash and prizes."
This is a classic TOXIC deal.
If VAPH is a successful company, if the Athletes Foot medication becomes the "cats meo," then the result could be completely different.
Congrats on shorting this pos. You withstood quite a pump so you deserve a good reward. As for millenium, MAYBE they'll get 2% interest once or twice before VAPH goes into default. It is still money down the crapper borrowing capital to this confirmed loser ceo. No mention of a credit rating for this issue but its probably C- one notch above D as in default. And I thought the bond was not to be shorted against. If they shorted this crap then it would be a safe bet by cashing in the shorted stock.