What if the warrant holders decide not to sell their warrants to the company at $7.0125?
After all, the stock was much higher at the time of filing, and they may not have envisioned such a low price.
The company will then keep the extra 20M or so cash, pay off debt, expand faster if demand is there, be more secure.
And the warrant holders will get to sell at a better time, when the shorting by underwriters is absent, the float is bigger (so the daily volume to sell into is bigger) after this offering, the seasonally strong winter is at peak, more participants have been drwan into the sector (the big rallies in oil and ng are only 3 months old, capturing headlines).
What makes you think the underwriters are still shorting? I would imagine they finished shorting a while ago and them and their cronies are covering and going long here. I doubt they would continue shorting below the offerring price.
The guy ALBMW spends all day everyday bashing this stock trying his best to push the price down to $5.50. That's his game. I would not put any weigh to anything he says. Anyone long on this board knows where he is coming from.