RE:Warrant outstanding versus shortBLACKJACK86 wrote: still 139,000 warrants outstanding, each warrant convert into 227 share , that's 31.5 millions share.You think the warrants holders are shorting the stock?
That did happen with Nortel , they made a financing with warrant and the warrant holder shorted the stock, basically killing Nortel (won't happen with Ath of course), somebody even came on BNN to brag about making a killing for their clients.
This has been my theory for a very long time. It's not like nortel. The warrants were a deliberately very generous sweetener to the debt financing deal. Those investors still hold the debt and happily collect their interest payments. But bond investors don't want or like equity risk. So as the stock rose and those warrants became more and more valuable, they wanted to "lock in" their profit so they shorted the stock. When warrants expire, they will be exercised, and the short will be unwound with the shares issued to the warrant holders who then will take delivery of the underlying shares. In theory. There may be a few other shorts but wow they must be tired of having their azz hat handed to them.