They absolutely sold their shares upon issuance in 70s, (8 million shares worth, (Imiami shows 9 million shares traded, obviously there was trading in addition to the finance shares) and in effect they have their warrants for free (the few cents difference between their purchase price 80 cents and their sale price in the 70s) There is no evidence that after they sold they proceeded to short the stock, as volume dropped off considerably.
wakeme, you said "Thats the point, Good for you! Now if everyone felt that way, the price would stop dead cold here, then turn around, because you stop giving it away to the thieves." maybe not..illegal naked shorts want you to buy ! they need buyers to short into..they also work these boards to pump stocks so they have buyers to short to..no buyers and the stock collapses..notice how this stock goes down on good news? why? they kill it with illegal naked shares..notice how anyone who complains is trashed? whiners, babys, children, weak..all the terms we hear now..its not the bashers that are the problem, its the pumpers! $4,3,2,1,.50 cents and still pumping..why? they need buyers to short to..simple..they claim its a steal! great bargain! keep buying! they have been in here for a long time..they have no shares.. rich guys pumping an otc stock daily? not likely..millionaires..no..frauds, yes. where are all the pumpers from even months ago? gone..only a few left..still pumping.. scarey
When augme issued the additional warrants and stock take a guess who was there to buy the stock. Please read the article below!
Investors in PIPEs(PRIATE INVESTMENT IN PUBLIC EQUITY)
Hedge funds constitute a large percentage of the investors in micro-cap PIPEs. Hedge funds invest for the obvious reason: their returns from PIPE investments meet or beat market benchmarks. Hedge funds are able to obtain market-beating returns notwithstanding the poor performance of PIPE issuers through a relatively straightforward trading strategy. They sell short the issuer’s common stock promptly after the PIPE deal is publicly disclosed. To execute a short sale, a fund borrows stock of the PIPE issuer from a broker–dealer and sells this borrowed stock into the market. The fund then closes out or covers the short sale at a later date by buying shares in the open market and delivering them to the lender. By shorting stock against the PIPE shares, the fund locks in the PIPE deal purchase discount. With a traditional PIPE, if the market price of the issuer’s common stock drops below the discounted price following a PIPE transaction, the fund will take a loss on the PIPE shares, but this loss will be exceeded by gains realized when it closes out its short position because it will be able to buy shares in the market to cover the position at a lower price than it earlier sold the borrowed shares. If the market price of the issuer’s common stock rises after the PIPE transaction, the fund will take a loss when closing out the short position, because it will have to buy shares to cover the position at a higher price than it earlier sold the borrowed shares. This loss, however, will be exceeded by an increase in the value of the PIPE shares since they were purchased at a discount to the pre-rise market price.
In addition to short selling, many hedge funds retain up-side potential by negotiating for warrants as part of a PIPE transaction. Hedge funds typically hold on to these warrants even after unwinding their PIPE shares positions so that they can profit further in the event the issuer’s stock happens to rise above the warrant exercise price. In sum, hedge funds are able to garner superior returns through PIPE investments because they purchase the PIPE shares at a substantial discount to market, manage their downside risk through short sales and floating conversion prices, retain up-side potential through warrants, and liquidate their positions a relatively short time after closing on the private placement
lol...I won't mind taking it from some of the idiots posting here. I am tired of all their whining. Day in day out they are complaining like some stock fairy is listening up there and is going to reverse this pain for them. Jesus! The bright spot is that weak hand will get flushed. Thank god for that.