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Biotech / Medical : ImmunityBio converts from Immunomedics
IBRX 2.025-4.0%11:56 AM EST

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To: bobbseytwins2001 who wrote (1049)5/29/2025 6:17:21 PM
From: Maturin3 Recommendations  Read Replies (2) of 1229
 
Early in my career I worked for a publicly traded energy company that had run into financial challenges, and it was there that I began to learn about the complex trades put on by sophisticated institutional investors. Our company was severely leveraged and it seemed only a matter of time before an eventual bankruptcy filing, but nevertheless the executive team was able to refinance the debt a few times and buy 4-5 more years of life as a public company. All the while the company stock was heavily shorted. At the time I thought the shorts were simply speculators who guessed that oil and gas prices would not recover enough to stave of a restructuring.

I later learned that many of the short sellers were holders of our subordinated debt. Seems that if you are a debt holder and concerned that there wont be enough left to pay you out during a bankruptcy, you can short the company equity as a hedge against your debt position.

Could this be happening at IBRX? Perhaps, though I don't know enough about who owns the debt.
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