They have been converting the June note. There is a limit on how much can be requested to convert per month. But it looks like from the 10Q, the note holder skipped a month or two and over the last month is collecting all at once. He uses ALPS to sell these shares, if I didn't know better, I would think the note holder was trying to tank the share price by waiting and then converting more than the normal allotment (as the share price drops they redeem more and more shares at the lower price).
This is what I think happened on March 11th, speculation on my part, but showing how these convertible guys are slimy. The note holder shorted the stock to hit support of 48c prior to March 11th. On March 12th they converted and March 14, they converted using the low 48c price. On March 14th they started the day by covering some shares shorted prior to March 11th under 50c which they shorted above 50c (creating that massive spike in volume the morning of March 14th.). With this volume spike, other MM and people joined in buying. They then sold shares they got by on March 12th and March 14th (40c per share conversion price) around 52c. These guys make money all the way around. They win the trading game my having advanced knowledge of when lots of shares are going to be sold, covered, bought, converted, etc. JMO and a guess of what happened to show these guys, it might not all be true how it transpired, but I am sure some aspects are.
The reserving 50M shares for the convertible notes, I don't like either, for $12M total combined loan, that comes out to 24c per share.
This is what I think happened on March 11th, speculation on my part, but showing how these convertible guys are slimy. The note holder shorted the stock to hit support of 48c prior to March 11th. On March 12th they converted and March 14, they converted using the low 48c price. On March 14th they started the day by covering some shares shorted prior to March 11th under 50c which they shorted above 50c (creating that massive spike in volume the morning of March 14th.). With this volume spike, other MM and people joined in buying. They then sold shares they got by on March 12th and March 14th (40c per share conversion price) around 52c. These guys make money all the way around. They win the trading game my having advanced knowledge of when lots of shares are going to be sold, covered, bought, converted, etc. JMO and a guess of what happened to show these guys, it might not all be true how it transpired, but I am sure some aspects are.
The reserving 50M shares for the convertible notes, I don't like either, for $12M total combined loan, that comes out to 24c per share.
Quote:On March 12, March 14 and April 2, 2019, the Company received redemption notices from the holder of the Company’s June 2018 Convertible Note, requesting redemptions of $150,000, $250,000 and $125,000, respectively, of the outstanding balance thereof. In satisfaction of the redemption notices, the Company issued, in the aggregate, 1,281,194 shares of common stock to the note holder in accordance with the terms of the convertible note. Following the redemptions, the outstanding balance of the convertible note, including accrued but unpaid interest, was approximately $5.3 million.
