Re-reading the prospectus: "As security for the performance by...

Re-reading the prospectus:
"As security for the performance by XTEK of its obligations under the Kentgrove Equity Placement Agreement, XTEK must issue 700,000 Shares to Kentgrove. These 'collateral' Shares are to be credited or returned to the Company upon the expiration or termination of the Kentgrove Equity Placement Agreement. These 700,000 Shares will be issued to Kentgrove in accordance with this Prospectus."

Likely they have 950k they could sell I guess, although all things being equal the 700k will have to be returned later.....

Can anyone shed some light on this?