If the 23M figure is correct, and all of the other shareholders affected by the April 15 S-1 elect to convert to common (1,532,871 shares), then Combination, Inc.'s 2.8M shares (even without its 225,000 warrants) would make it a greater than 10% shareholder subject to Rule 16b's prohibition against realizing short-swing profits on securities held less than six months.
I'd be surprised if the SEC would allow Combination to deliberately delay converting some shares in order to manipulate the ratio and avoid being classified as a >10% shareholder, though I'm not positive of how the SEC applies the rule where there is a holder of convertible preferred.
I don't think Combination, Inc. will want to unload all its shares, and if it does, without more shares being registered, it will have to cough up its profits to WAVX.
In terms of timing the news releases, if WAVX indeed needs to trade above $4.00 for a minimum period of time to get on the NASDAQ (mentioned on Yahoo, which I have not verified), then maybe WAVX has to get the news out as soon as it can no matter what, and ahead of the relisting effort.
We got our higher low today. Still looks good.
Pure Folder
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