Searchlight Innovations Inc T.SLX

Short position SLX and Hecla

[mouserman]

I looked at shortsqueeze.com and found Hecla's short position to be 23.7 million shares and that is an astounding 8.3 % of the OS share count. I an inclined to believe  a big % is debenture holders or warrant holders shorting against their convertible shares , that were obtained in prior financings at lower prices. While they can cover their shorts with warrants or some other instrument,  covered options etc, they are still  taking a loss on the short positions as they have been there a while and are definitely underwater.
However they are covered by warrants that  likely still offer a bit of a gain. This was explained to me by a savvy options trader who i chat with on occasion when i was questioning GBG's huge short position .
SLX short position is minor , at less than .4 % of the OS shares. AND likely that is some shorting from those who acquired warrants in the last financing done in the fall, again a type of hedge. As well some of the weakness seen in the last while could be from the overhang in that PP that will come freetrading April 16. I suspect some have shorted against the warrants held there. However a majority of the financing went to Sprott and MGI, who are notoriously long , strong type of investors and that is a huge difference when you line up financings , the difference between the cannacraps of the stock world and  the Sprotts.
if they do indeed sell commons and exercise warrants , it will raise cash for the company altho we do get some minor dilution.
There are about 12 million warrants doled out in that financing that convert  at .90 , and they have 36 months to exercise.
That appears to be resistence here, and i find greed and desire for quick profits, seem to override fundamentals and value.
I mentioned that same train of thought when i mentioned the AUN promo hype happening ahead of their big PP coming free. That one makes SLX's financing look like very nice in comparison . AUN has 193 million shares coming free that were acquired at .31 with a full  warrant at .41 . AUN dropped below a buck to .96 and has had a stream of insider selling. Latest news was pushing back that debenture financing repayment date with Silver Standard.
SLX has had no insider selling  , or at least none have been filed.