RE:RE:RE:MMCAP It is likely that MMCAP will continue to sell their shares (whatever, if any, are left of the common shares) and at some point will execute their $0.35 warrants into shares and sell those as well (except, it appears, they will look to trade-off these $0.60 May warrants eve.wt)... this is their typical approach / model.
They still have a lot to get rid of (assuming they proceed status quo on divesting of Eve in this typical way).
But what is interesting, is the nature of what MMCAP is now holding.
I believe (correct me if I am wrong), but today (if not earlier, today was the latest this conversion could happen) MMCAP would have become the proud owners of another 18M common shares of Eve as a result of the $9M special warrants they bought being executed into common shares, for which they paid $0.50 (with the $0.60 May warrants as the side dish they can, and looks like are, selling off)... they prob are trying sell the $0.60 warrants to hedge down the fact that they paid $0.50 for those shares.
But right now, they have participated in depressing the price with oversupply into the low $0.30’s (with Ravi’s inside trading not helping the matter).
So what does MMCAP do? Does it make sense to keep dumping or wait for a rise (is it time for a pause)?
Do they hedge down everything they have left to get it closer to a price point where they can average a profit with what they have left (if the price rises slightly)? If they executed all of their $0.35 warrants they would have 16,665,000 shares (also giving Eve ~$5.8M for the books)... plus the 18,000,000 at $0.50... that’s 34,665,000 shares averaged to $0.428. Maybe they average that down further with the $18M May warrants at $0.60 they are selling... but I don’t really see a way way they can average down anywhere deep into the $0.30’s (these warrants aren’t valuable enough?). So, presently (based on current share price) they are still not in the range of profit, even based on the averaging-down of what is left... the share price would prob have to ride back up first, into the later $0.30’s or maybe even early $0.40’s, for this to make more sense on average (for them to continue dumping).
Just trying to take a stab at what would make sense here. Based on this limited info. I am not sure MMCAP can be analyzed logically from our vantage though (from an outsider’s perspective)... it isn’t all that clear what the rhyme and reason is to their tactics.
Or, they will just continue to dump hard and they have a strategy in motion we are not privy to (eg maybe they already averaged all of this in some time ago, and don’t care if they will be selling below the average for a while... maybe they already made their cheddar, and this is just gravy.
Dunno. Interesting though! Am I missing something? Anyone have other insight??