I would be quite concerned if they go ahead with this. You buy the stock and they lend it out to short sellers who will profit from price declines. Short sellers are there to trash companies share price- sometimes they are justified in doing because they have identified fundamental problems like with Enron- other times it’s looking to kill growth companies
The ultimate objective for any short seller is to see the company fail- if your company is strong enough and you are happy to stay invested long enough so that short selling driven declines don’t matter that’s one thing.
Ocado is one stock that has been heavily targeted by shorts. They recently raised at a lower amount so the dilution was higher. Blue Prism was another target which resulted in it being taken out at a bargain basement price
There’s a reason why the likes of AJ Bell and Hargreaves pledge not to lend out customer securities. It is very hard to see that it is in the customers best interests