Jul. 25 at 2:06 PM
$MRLN Massive share overhang: There are currently around 96.5 million common shares outstanding, but tens of millions of potential shares remain hidden in reserve (for Series A preferred conversions, options, and warrants). Once institutional investor lock-up periods expire in september, a massive dump of these shares onto the market would create immense selling pressure, capable of crashing the price toward
$1.
What this means for the company (Delisting Risk)
If dilution drives the MRLN price below
$1.X and it stays there for more than 30 consecutive business days, the company will receive a NASDAQ delisting warning.
To remain on the exchange, Matt George would be forced to execute a reverse stock split (e.g., 1-for-10). This artificially boosts the stock price (turning
$0.50 into
$5.00) but reduces your total share count by 10x, locking in the losses.
