Comment by
jeffm34 on Jan 21, 2021 10:08am
Did the new investors short the stock from $4.20 down to $3.50 during the run up knowing they had shares coming at $3.50 to cover?
Comment by
scarlet1967 on Jan 21, 2021 10:33am
I had that discussion with Spartrap on Stocktwits and below was his idea which is another way to lol at it. "Overallotment will simply be sold short to clients while the bankers cover on the open market at below offering price. Which also happens to stabilize the price back up again. They have 2,175,000 shares of flexibility to do so (15% of offering)"
Comment by
Spartrap on Jan 21, 2021 11:26am
Well since then we learned the underwritters could place all the overallotment at the intended price, regardless of the drop, and the company issued the shares for it, so no, sorry, no big short to cover on the market from the bankers *shrug*
Comment by
scarlet1967 on Jan 21, 2021 11:54am
Well whoever they are they need to cover , the presentation yesterday was great I just hope the company would reach out to the broader market rather than only institutional investors.
Comment by
palinc2000 on Jan 21, 2021 1:20pm
They only need to buy in the open market if they are naked shorts..I suspect they are shorts who had suscribed to the Units under the prosoectus and shorted before Closing in expectation that they could either cover when they received the Units or buy at a lower price on the open market .Thus zero risk
Comment by
jeffm34 on Jan 21, 2021 1:28pm
Plus they got the half warrant too!
Comment by
Bucknelly21 on Jan 21, 2021 1:34pm
By the way if these buyer are so close what are they waiting on?!