Mar. 10 at 6:17 PM
$ELPW case study, it issued 21.7 million shares at 0.3231 and 21.955 millions warranty with zero exercise price and each warranty can get 2x common shares. total 77M shares issued with average about 0.1/share. When the firm buyer got their first 21.7m shares, they shorted this thing to 0.05 with 30-40 M and cover it later with warranty shares. (21.95 M x2 shares) as long as the buyer can sell their rest shares at 0.1, they made a few million dollars after subtract its cost (
$7 millions)
cost : 7 millions
shorted it from 0.3 to 0.05 with 40 million shares, to get $ 7million cost back, cover it by 35 millions , they got
$35 M shares with barely no cost. Then they can sell these shares with whatever the price is.
total shares 113,019,749 ， will be 1.4m after RS
