Remember, much of this offering was subscribed to before the final price was set. A substantial portion of those buyers were prepared to pay in the 60 cent range. So when the price fell below .50, and the 25% off discount allowed them to buy for .36 AND get 52 cent warrants to boot, it was a windfall.
Last week was the first time we sustainably breached the 36 cents in 2 months. I'm sure many of those 37 million shares were poised to be unloaded for a profit on any quick uptick. They can take a gain on their shares and hold the warrants at no risk.
Who here wouldn't like that deal!?
It remains a huge overhang and the subscribers to the deal know that the price they paid was a huge discount that they will be able to exploit. In addition, millions more shares traded hands below 36 cents over the last few months. Offering subscribers were not by and large selling out at a loss, why would they have, except maybe to offset some gains.
We need news that resets the valuation, because, for now, the 70 million shares and warrants, and the millions of shares bought below .36 CA will dictate the range. It's that simple.
