RE: RE: RE: Short for Warrant Exercise Cancel Out. >>>> the warrants have now expired, the bond holders have been paid back in full.If they didn't convert, they are now short. Quite simple. Once the short summary is updated for Aug. 31, and the number stays the same, those will be all shorts. The stock hasn't traded since Aug. 13. <<<<
2guys, I totally agree with you when you say the stock hasn't traded since August 13th.
But are you saying that any warrant what wasn't exercised by August 13th would now be worthless? I'm not sure that is the case but I really would love to hear/see an authoritative statement about what happens when warrants come due while a stock is under CTO.
Also could the bond holders have been paid in shares in lieu of cash while the stock was under a CTO? Again, I definitely don't know but would love to know the answer.
Depending on what happened on August 28th to unexercised warrants and how convertable bonds were paid, any shorts from August 13th may or may not be covered, although the actual cover can't happen until the stock is allowed to trade again. Of course a bond holder who had shorted the stock to lock in a profit, would have decided to take cash instead of stock betting that there will be price spike down on the day the stock opens for trading again. Just like the price of gold after Jackson Hole, an initial spike down, no doubt to grab stop losses and then a nice steady run-up.
If the correct answer to the handling of warrants/bonds on August 28th, my suggested strategy for locking a risk free profit may indeed turn to come with some risk :)
Have a good weekend.