OK, trying to calculate the Hanover settlement in today's filing
Hanover can own up to 9.9% of the stock at any given point. The judgement is for 740K paid in common stock. They initially got 185K shares plus 90 k more so assuming they are selling down at their 75% discount, this should take care of about 1/2 of what they are owed.
Then if they get the next 190K shares at an average of $1/share, that would leave about $200K owed by the company, and the O/S would increase to 2.1 million. However they can put continued selling pressure on the stock by not taking a full 10 % position after selling, and choose at what price they want to take back their 10% stake. And the farther down they can bring the stock, the more they can extend the payments to them in stock. It will be at that point that they reclaim their 10% position for their last sell off that neither the company nor them will print any more stock, and this will run to a 7,5 million cap from about 2.5 million O/S or to $3/share-however it could go down to .75 share before then.
So sorry-bad math on my part-reevaluating-they may let it breathe, which would be good for the long run, and there may be other unexpected catalysts, but as long as Hanover is selling to reload cheaper, then so am I now. You win shorty -load up at $1 as per today's filing
so this is Hanover doing most of the
This is an interesting analysis. A few months back when pharma Aeterna Zentaris had a reverse split, the PPS deflated (but not this much). I wasn't following it at the time, but you provide a very credible interpretation of the FREEs current volatility.