'Well, there you go again.'
The number of shares they can convert per day is equal to the number of shares they can sell per day. It is a maximum of 50,000 shares a day and is from the whole group, as if they were one single entity. This is why they have to short until market mechanics allows them to convert their shares and cover. If volume picks up again they could be in serious danger of a squeeze.
The point, of course, would be to have a low cap price which will be set in the 2-10 through 3-24 period (not to diddle around with 50,000 shares a day now). If the cap is set at five dollars ( or whatever) then they will be able to convert at $5 even if the stock is at $100 for the next 4-5 years, and you better believe that they will be the primary boosters. It's cost them dearly to drive the stock to this level, approximately a million shares have been converted and sold, most of it lately, and it has cost them about 13%. No more upside for them there, but I got some of it.
I think the stock anywhere near this price is an absolute steal and the S-3 holders know it better than anyone. I don't expect them to lean on the offer much longer.
I'll take your bet. Bottle of Dom Perignon? |
