RE:RE:RE:Climbing back up?I wondered this as well as I cursed Lind. Then I thought and thought and ultimately came to the conclusion that Lind has a duty to their investors and likely has some internal policy that they do not want to accumulate a controlling stake in any business.
After the first tranche of Lind financing, BABY actually doubled in stock price. If it weren't for bad luck and mis-steps by management, Lind would be getting fewer and fewer shares every month when Else issued $405K USD payments in shares. Lind did not cause the drop in revenue, the Danone LOI to expire without a deal, FDA delays, or any other factors that led to the initial stock decline.
Once the stock started to decline, Lind started to receive higher and higher number of shares every month as part of the $405K USD repayment. If Lind did not sell, they would have accumulated enough shares to have to report their beneficial ownership and be considered "insiders," which they either didn't want, or were prohibited from by policy. So every month, Lind had to sell.
Now we get to the part that Lind DOES have control over... when, how much, at what price to sell these shares of BABY. Let's look at a few possible ways this could have played out:
1) Lind gets the shares issued on the first business day of the month and dumps at market open. The price immediately caters as there is not enough demand in the order book to absorb the supply. Lind also loses money because the shares were issued at 85% of the 5day VWAP at the end of the previous month and now that they're dumping the price has tanked. This scenario is not good for us or Lind.
2) Lind gets the shares issued on the first business day of the month and immediately starts selling in small lots all day everyday. The stock price still goes down but not as fast and Lind is able to get a better average price, but still less than the issue price of the new shares.
3) Lind gets the shares issued on the first business day of the month and sits on them. The stock price goes up a bit as the selling pressure is reduced. Lind starts selling. The price starts dropping from a slightly higher relative high and Lind is able to get a better average price, possibly even higher than the issue price of the new shares.
Ultimately, the fault lies with management. A little bad luck and a little poor execution. If management had executed better, Lind would not be selling a single share and would be counting the days until they could cash in the warrants.
Lind literally made the best of a bad situation but retail traders are the ones paying the price. The only things that can save us are:
1) for a major uptick in demand for the stock that overcomes the selling pressure
2) a "white knight" that loans Else enough money to pay off Lind (but at what cost?!)
Good luck to all longs....we're going to need it!