Shorts get to cover by buying the massive dilution shares. That's how this game is rigged. I won't charge you for this lesson.
The 77.9 million shares are the ordinary shares. There are just over 3 million ADS shares where 1 ADS share equals 20 ordinary shares. There could be another 3 million plus ADS shares if all the warrants are exercised at some point but the company would be paid $4.12 per ADS. Ordinary shares trade on the TASE and ADS shares trade on Nasdaq.
The price was up 4.8% today on the TASE, so it is not holding up that well and it lagged the move there yesterday by just over 3%. Since the TASE closed earlier the shorts are working it again. I can't imagine the big boys letting this spread last as it is easy money for them. We shall see.
With the pullback today from the test of $5 the move in price in the US is still almost 9% less than the move on the TASE using the last 5 days as a basis. It will be interesting to see how this closes today.
The ADSs and warrants were issued in a fixed combination of one ADS and one warrant to purchase one ADS for a combined price to the public of $4.13. In addition, the underwriters partially exercised their option to purchase an additional 220,074 warrants to purchase 220,074 ADSs. The warrants have a per ADS exercise price of $4.13, are exercisable immediately, and will have a term of five years.
This can be found in the news release on Nov. 25. I suggest reading it.
My guess is they wanted price to retest the 50 DMA and to shake out some shares. It will be interesting to see how much shorting happens today and how this closes today.
I believe the shorts are confident because there appears to be plenty of time before the PK study is finished and the NDA filing, unless something unexpected happens. The short interest as of the end of Feb. will be out after the close tomorrow and can be found on the nasdaq site. It will be interesting to see if it decreased.
Shorts are still working it and will probably try to close it today under the 5 SMA on the daily. 8k shares just hit the ask in the 3.30s with a big spread and they lower the ask. The game is on.
It appears to be trading very thin, so hopefully the float is locked up tight. Some good news now should really spike this. Wish we would get some and this move continues. GLTA.
No reason for this move, so major dilution must be coming to the suckers that chase. Get out and see how damaging the dilution is first.
Sentiment: Strong Sell
I would not mind a buyout now to roast shorts and get the year started on a very good note. GLTA.
I think some shorts are trapped but not sure it is a large number of shares. Rarely does price move up thru a major moving average and hold up on its first attempt, so shorts are probably confident at this level. I just hope there are enough buyers to force them to cover at this level.