RE:RE:Anyone with an educated guess The Offering states, "Zenabis, its directors and senior officers have agreed, subject to certain limited exceptions, not to sell any Common Shares or other securities of Zenabis for a period of 60 days from the closing of the Offering." Therefore, it's not Zenabis officers or directors that are selling any of their existing or newly acquired shares. We can rule that out as a cause of share price weakness.
Assuming the subscribers are going long (both short term and long term), to make sense of this paradox, as to their reason for subcribing to this Offering at 13 cents, consider that these affluent, ultra-high net worth investors are not just buying 30K shares as retail investors might, but instead are buying 10M shares ($1.3M) or 50M shares ($6.5M). They cannot buy this amount in the open market without driving the price up - they get the warrants too which could be lucrative (5 years for the warrants). Most subscribers likely commited to the Offering before June 18 when ZENA shares where $0.15. Even after the price drop to 9 cents on Friday morning, the Offering was increased, so those subscribers going long were likely not happy but went forward considering the large amounts they were acquiring, i.e. 50M shares. (I would hope all subscribers were in this category).
All security certificates must bear a CUSIP or an ISIN and as the issuing of Offering securities is now complete, these newly minted shares are now in the accounts of the subscribers, likely since June 24. I doubt they would sell at a loss (shares acquired at 13 cents now down to 8 cents), assuming they were going long.
However.... please note, these financiers have sophisticated playbooks if the subscribers shorted, then they can use the newly minted shares to cover the short positiion and pocket whatever proceeds they shorted, whether it's at 8 cents, or 9 cents, or perhaps they even started to short at anything above 13 cents, one month ago. In this case, they'd make money and get free warrants. I am positive that some subscibers did this, such as the MMCap and Gotham Green Partners of the world. This is illegal in the US but permited in Canada.
At these 8 cents levels, I don't foresee any further downward pressure from the financiers/subscribers (if that's the case) as the shorting reward dwindles as ZENA declines. I would guess that upto 50% of the offering subscriber base would fit into this category.
I just hope the financiers/subscribers did the Offering because they thought ZENA was a good investment and not just a good trade.