Interesting activity on FOBI trades. When FOBI announced the LIFE share offer, one of the opportunities that I saw was Arbitrage. The ability of a Buyer to make a profit on small differences in prices.
My thought was (and I think that it may be happening) is that people who currently own FOBI shares could do the following:
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Current FOBI shareholder buys X number of new FOBI shares under the new FOBI LIFE plan which is $0.07 per share + 1 full warrant;
- Same, current FOBI shareholder sells X number of FOBI shares currently owned by shareholder, at the current open market price which, this morning is trading between $0.08 to $0.085 per share.
The Arbitrage opportunity is dynamic and assumes that the shareholder is able to sell some of their current shares today at a price equal to or above the FOBI LIFE share price above $0.07 per share+share warrant, and, at the same time (today), the shareholder signs up with FOBI to purchase the same quantity of shares under the FOBI LIFE program (before FOBI run's out of FOBI Life shares to sell). The Arbitrage is a gain of $0.01 to $0.015 per share plus the full share warrant.
As a theoritical, example: a FOBI shareholder could sell 100,000 shares (that he/she currently owns) on the open market at $0.08/share, and then buy 100,000 FOBI LIFE shares including the warrant at $0.07 per share + full warrant. The net result would be for the hypothetical shareholder to pocket $1,000.00 plus 100,000 share warrants. The only cost to the shareholder is the commission cost to sell the 100,000 shares on the open market (hypothetically). Hence, the Arbitrage opportunity.
Interesting.
I am not a Ficuriary Investment advisor or an Investment Adviser of any kind. I am not affiliated with FOBI AI directly or indirectly in anyway, other than to be a FOBI/Loop Insights shareholder since 2020. Do your own Due Diligence and/or discuss it with your Fiduciary investment advisor.
Cheers and stay informed, jdfm22