Short positionAt September 30, 2018 Largo had 524 million shares and 147 million warrants outstanding.
Now that we are into the New Year those with large taxable capital gains on their LGO warrant positions will be exercizing their warrants in increasing numbers.
One would expect the short position to increase as some of those exercising their warrants will short the stock ahead of completeing the warrant exercise. This shouldl help to keep an orderly market as a large number of shares wil be issued off the warrant exercize over the next several years.
What is really much more important is how sales of the shares issued to the very large shareholders from the exercize of their warrants will be handled.
Last year we saw some very volatile trading around the sale of some shares by these large shareholders. It seems entirely possible to me that we could again see something similar occur unless a competent investment banker steps up and really takes charge of the entire process and introduces some new, and potentially large, sharehlders to the company.