RE:RE:RE:RE:RE:RE:QUARTERLY CONSIDERATIONSTo be more direct, Bruce blew money like a drunken sailor and they're still trying to unwind the mess. So there are actually two problems overhanging WEED. The waste of money in the first place, and now the waste of money trying to unwind it. The cash-burn is COMPLETELY unsustainable.
And that is at the crux of my point. Now, from a trading perspective, this is where it gets interesting. As I noted yesterday, the shorts continue to smell blood, and rightly so. They are anticipating an announcement of dillution because they are going to have to raise cash. But here's the problem. As the shorts continue to add to their position, it puts pressure on the share price. As long posistions get sold in order to get out of the way of the dillution, it also puts pressure on the share price. But if the company is going to have to issue more shares to raise money, and the market anticipates it (as it is now in the process of doing), So do they just stand by and watch the share price erode further, making their share offering even lower?
It's a pretty vicious catch-22 for the company, and puts pressure on them to do the share offering sooner than later. But then that only gets the shorts salivating even more, seeing a payday coming in a possible shorter timeframe, putting even more pressure on the stock yet again.
It will be intersting to see the short report for the last 2 weeks of May. Hopefully that data will be available soon.