$OCGN I asked Kelly if it is reasonable to presume based on the ownership rates that the investors could exercise all additional B warrants at once if they choose. Reply: “I think it is reasonable that these investors could exercise all of their warrants if they wanted to. I don’t know if they will.” As this process goes through the company’s transfer agent, she wouldn’t know right away. She also told me a while back that a question I asked was assuming investors were exercising as soon as they could. They obviously were, but she had to tread cautiously in affirming things that would validate anything beyond public view.
$OCGN This whole thing seems a little "neat." Insider buys conveniently timed with the end of B/C warrant dilution. With B/C warrants exercised, the OS count (disclosed just in time publicly) is such that I believe the investors can now exercise the entire additional B shares of 12.6M and be within beneficial ownership limits. So, what do you do? Dilute remaining initial B-shares to create fresh low, trap unsuspecting retail shorts to leverage for the ride up. I'll be very surprised if we see dilution tomorrow, outside of a few sparse shares that might remain ahead of full exercise of additional B shares. Why? The money. If the investors can now hold all of the remaining warrant shares (rather than fighting each other to use them up), there is very little reward-risk left in using their shares to dilute and short. There is much more upside opportunity to hold those shares (especially given insider buys and potential buyback) now. BuyBack, Neocart, etc. I'm just along for the ride.
View original message
  • 2
  • 1