(offtopic) Dear Brian & Jon - (re: CELL LYON,) I don't know enough to answer point by point; however, never underestimate the creativity of people who would spend their life learning how to squeeze blood out of stone.
Here is a plausible scenario: 1st, to get the numbers right, the LYON holders paid less than $500 [plus ML commission, if any] for a $1000 face value note. Even in a straight conversion situation [19 shares,] their cost is less than $12 per share, not $24.
Now, here is the interesting bit. With a note in hand, the holders can short the stock without repercussion of a short squeeze. So, let say they short 19 shares at $21. Instantly, they have reclaimed $398 cash flow. So, they only have ~$110 [commission factored in, let say] tied up. So, their real cost of ownership is ~1.25/shr. It may be true that they eventually will have to cover; however, between here and there, they can use the money to do other naughty deals.
Of course, we haven't accounted for their 4% [on $500, which means 18% for the $110 real cost!] So their short interest is taken care of.
Of course, the above scenario is purely imaginary. No knowing the details of the deal and actual happenings, maybe it is just an exercise of a paranoid mind <VBG>
rgds Bosco |
