Warrant countdown RESTARTS if price closes less than $ 3.00There are 9 days left for the warrant countdown, to hold above $ 3 per share. If the weighted average for any one of these days falls below $ 3 per share, the warrant countdown starts over.
So that means 33 million warrants cannot be called in.
The large numbe of shorts, are not real shorts, it is the LONGS who are shorting the stock and covering with their warrant at $1 per share. They are $ 2 in the money and, they have hedged their long bets in case RECO reports bad news. They will not lose on their original long position because of the short, but will lose the warrant.
This is high stakes GAMBLING.
Now I presume that RECO has forseen this and does want the $ 33 million in their coffers.
Perhaps they are holding a wild card in their hands, waiting for right timing, to issue press release, saying that visually they have been able to confirm that there are dark, rich organic shale rocks as they have expected.
That would send the price soaring.
Next week should be interesting....
Or, the company could choose to remain silent, allow price to go where it wants, and only get warrant conversion once they announce results from all 3 drill holes, that is, if they are successful.
PS: For myself, I believe that they already know that they have a petroleum system, from visual because they ordered the very costly 450 km 2D Seismic to be done. They would have waited if the drill hole 1 was filled with sand.
mpo