They owned over 1 million shares before this latest financing so they picked up over 2 million shares in this round of financing, for a total of 3.5 million shares.
We still don't know who the other "investors" were since they own less than 10% and are not obligated to report until end of quarter.
So this fund is selling a few hundred thousand shares that they picked up a lot cheaper than $1.60.
They want to lock in some profit on those older, cheaper shares which is understandable.
The reason for the big backslide is not from the selling of these shares but from the shorting of the shares that has taken place since the financing.
The funds needs to hedge their bets hence why they are called hedge funds.
They shorted it down to 1.60 and the market makers took out all of the shares down to 1.45.
They are done shorting the stock now.
They may or may not continue selling the older shares.
But the bottom line is that they still own over 3 million shares and they are not going to be selling most of those now.
Now for the good news that will move the stock back over 2 and into the 3's:
July is the month of EV hype,
The sales numbers of EVs will be released in the first few days of July and I a expecting a record month of sales due to all of the $199 leases and the discounted Chevy volt.
The news media will have a field day with the hot EV sales and eye doubters of the EV market will start to turn.
The hype will be steadily increasing throughout July as more and more investors discover the EV stocks.
The new EV cars will come out in August and September (BMW i3, etc) and sales will escalate in the fall.
ECTY will fly in July.