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Posted On: 04/10/2020 5:14:30 AM
Post# of 148908
Well, this explains why the SP hit a wall at $3.00....From the Notes to Financial Statements section of the latest financial report:
Note 17 – Subsequent Events
.....
During March 1, 2020 through April 6, 2020, the Company issued of 29,357,527 shares of common stock in connection with the exercise of warrants and stock options with an exercise prices ranging from $0.19 to $1.00 per share. The Company received proceeds of approximately $7.4 million from these exercises.
....
Doing a very simple analysis:
Prior to 2-29-20 (before 'subsequent events'), there were 59,546,851 (~59.5M) warrant-shares issued.
SP jumped from ~$0.35 to ~$1.00 on 12-27-19.
SP jumped from ~$1.00 to ~$3.00 on 3-27-20.
The average volume from 12-27 thru 3-26-20 (62 trading days) is ~3.7M shares.
Assuming 10% of average volume is warrant-shares being sold, the total number of warrant-shares sold during this period is ~23M shares leaving ~36.5M warrant-shares to be sold (original issued holders).
Adding in the 29,357,527 (~29.4M) warrant-shares issued during the 'subsequent event' period brings total warrant-shares to be sold to ~65.9M
Total volume traded from 3-27-20 thru 4-9-20 (10 trading days) is 165,896,185 shares. Average daily volume in this period is ~16.6M shares.
Again assuming 10%..., the total number of warrant-shares sold during this period is 16.6M shares leaving ~49.3M warrant-shares to be sold.
Obviously, there's no way of knowing what % average daily shares should be attributed to selling of warrant-shares. I think 10% is conservative, which is why I selected it.
At 20% distribution, 9.7M warrant-shares are left to be sold.
My point (hope) is that most, if not all, of the warrant-shares have been absorbed by (mostly) new shareholders. That way, we should be able to enjoy a nice ride to $6+ on news of FDA approval for emergency use for severe/critical cases followed by FDA approval for mild/moderate cases.
What happens after that, who knows, but there's no arguing that the potential is bullish!
Please, no more exercising of warrants...or if you do, why not hold and let it ride???
Note 17 – Subsequent Events
.....
During March 1, 2020 through April 6, 2020, the Company issued of 29,357,527 shares of common stock in connection with the exercise of warrants and stock options with an exercise prices ranging from $0.19 to $1.00 per share. The Company received proceeds of approximately $7.4 million from these exercises.
....
Doing a very simple analysis:
Prior to 2-29-20 (before 'subsequent events'), there were 59,546,851 (~59.5M) warrant-shares issued.
SP jumped from ~$0.35 to ~$1.00 on 12-27-19.
SP jumped from ~$1.00 to ~$3.00 on 3-27-20.
The average volume from 12-27 thru 3-26-20 (62 trading days) is ~3.7M shares.
Assuming 10% of average volume is warrant-shares being sold, the total number of warrant-shares sold during this period is ~23M shares leaving ~36.5M warrant-shares to be sold (original issued holders).
Adding in the 29,357,527 (~29.4M) warrant-shares issued during the 'subsequent event' period brings total warrant-shares to be sold to ~65.9M
Total volume traded from 3-27-20 thru 4-9-20 (10 trading days) is 165,896,185 shares. Average daily volume in this period is ~16.6M shares.
Again assuming 10%..., the total number of warrant-shares sold during this period is 16.6M shares leaving ~49.3M warrant-shares to be sold.
Obviously, there's no way of knowing what % average daily shares should be attributed to selling of warrant-shares. I think 10% is conservative, which is why I selected it.
At 20% distribution, 9.7M warrant-shares are left to be sold.
My point (hope) is that most, if not all, of the warrant-shares have been absorbed by (mostly) new shareholders. That way, we should be able to enjoy a nice ride to $6+ on news of FDA approval for emergency use for severe/critical cases followed by FDA approval for mild/moderate cases.
What happens after that, who knows, but there's no arguing that the potential is bullish!
Please, no more exercising of warrants...or if you do, why not hold and let it ride???
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