RE:RE:RE:Bond holders locking in their profits on warrantsI did not go through the prospectus of the offering but from the news release, it seems that these are 5-year warrants.
No idea what the game plan of these bondholders is. It seems so far they have shorted the stock to lock in profit of about 35%. They can do two things get the shares and cover their shorts or hold on to the short position and their warrants and cover their shorts from the market if the share price drops below their shorted price and then sell again at a profit. The only thing that can stop them from repeating this, again and again, is that the share price does not pull back.
By not covering their short position they are also hedging risk against their notes. ATH issued these notes offering on Oct 7 when the stock was close to the strike price of 94 cents. This means that the oil prices had recovered and the management came up with a very shitty deal for the company and shareholders. Cannot respect them for their incompetence.
This company has a huge float of 530 million shares outstanding and more shares will be issued under a dollar.