Aug. 31 at 10:29 PM
$QMCO $QMCO ⚠️ Worth understanding the Dialectic overhang.
Dialectic holds ~14.1M actual shares — roughly 36% of current shares outstanding.
Much of the position came from the debt conversion at ~
$5.19/share.
At
$24, those 14.1M shares are worth roughly
$338M, versus an implied ~
$73M basis at
$5.19 — around
$265M of paper profit.
Dialectic also holds additional warrants subject to a 19.99% beneficial-ownership blocker.
I'm NOT saying Dialectic is selling.
I'm saying buyers chasing
$QMCO near a
$1BN valuation should understand the size and economics of this position.
If Dialectic ever decides to reduce exposure, 14.1M shares is a serious potential overhang relative to QMCO's trading float
