Short positionI have added the current short positions to the ownership page --
Ownership blog This is business as usual and has happened before.
Once the entities involved exercise and receive shares for the rights they hold...these share will be delivered directly into the short position and the short position will just disappear naturally.
There is no malice on the side of the shorter...they gain no more money if the shares go down to 12 cents or 11 cents or 10 cents. They have already planned out all the logistics and it is all a done deal. No upside risk either. They won't lose anything if the stock goes to 20 cents in the meantime as well.
Short position up to August 14th should see another rise and then it will show virtually zero short position come August 31st as the rights will have been exercised on August 15th.
This is pretty much the same as people exercising the rigths and selling the shares immediately after they receive shares. It is just done ahead of time and gives the person a bit control over the exit price from a timing perpsective. Because they did this ahead of time..it actually reduces the overall number of shareholders that will be selling immediately..but only a little bit (1.7 million shares short).
Just simple math again. Just need to work through it step by step.
LONG...PGD
EKIM