Magna did a deal with ADXS on Oct. 31st, 2012 when the stock was $5 now it's over $11 and was over $20 at one point. I think Josh Sason makes almost all of his money shorting stocks illegally. Even when he does convert and dump shares, he often takes time to do so. And I don't think he ever does that unless the company can't repay him. When I checked some of the companies he sent to zero, he sometimes took a year to do so. He probably shorted a ton of shares of AMBS at $1-$2 before he made the loan.
Just realized, once he sells the stock he has converted, he no longer owns any so he could continue to convert and sell as long as he doesn't own more than 10% at a given time. So I think I am wrong in the above post. However, I think the way he makes most of his money is shorting the stock before he makes the loan- totally illegal but the guy is a #$%$. But if we get any good news, stock will surge, even if its just for a couple days.
More specifically they may be able to convert all of their shares (depending what the share count is), but they would need to sell them at a high enough price to get their money back. In a standard death spiral, Magna could end up owning almost the entire company- as the price drops, they just convert to more shares - $3 million dollars worth of the stock at 5 cents for example. then sell them. They can't do this here because they can only own 10%. So even if there were 150 million outstanding shares, they could own no more than 15 million shares, so they would need to sell them for at least .30 each to get their 3 million dollars back.
Taken from the prospectus, "Each share of Series H Preferred Stock has a stated value of $1,000 and is convertible into shares of our common stock at an initial conversion price of the lower of (i) $2.50, subject to adjustment, and (ii) 75%, subject to adjustment, of the lowest VWAP, during the fifteen (15) Trading Days immediately prior to the date a Conversion Notice is sent to us by a holder, at any time at the option of the holder, provided that the holder will be prohibited from converting Series H Preferred Stock into shares of our common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 4.99% of the total number of shares of our common stock then issued and outstanding, which limit may be increased to 9.99% at the option of the holder. " If they are limited to owning just 10%, that would be HUGE. as they could't just convert all of their shares and dump them. As the price declines, it limits how many they can convert. Does anyone else on this board read this differently?
There is some chatter on another message board that the "private investor" who purchased the Series H and warrants on Sept 30th is Jason Sason of Magna. Search him on the internet. He is a 27 year old guy who makes toxic loans to penny stock companies. Obviously the loan is at 12% with a 20%- 30% prepayment penalty, but the real issue is they convert to stock based on a VALUE of common stock, not a specific NUMBER of shares, and for a 25% discount of the current market value. He is converting the shares and dumping them to get his $3,055,556 back. This plunges the stock and dilutes it at the same time. He doesn't explain in one of the interviews exactly how he operates. He may be also be shorting the stock (if that's possible) before he dumps his shares to make even more money (which is probably illegal). But he makes at least the 25% discount. Then the other warrant he has for 1,298,612 shares he can sell in 6 months, so March 30, 2016 he will no doubt also convert and sell at that time. As the price declines, he gets even more shares which then dilutes the stock even more. But he still gets the 25% discount so he still makes money. There have been other guys like him arrested, especially for selling the stock right after its converted which he is apparently doing. The warrant which he has to wait 6 months in order to exercise and and buy the stock is more legal. AMBS needs to raise funds quickly to pay this guy off, by selling or partnering their asset(s).
I stand corrected, now they are saying " this clearance MAY allow us to complete our BP clinical trial in the first half of 2016" So they have gone from saying "late 2014, early 2015" to 2015 and now maybe the first half of 2016. One year has gone by and still not a single patient enrolled in any trial and no Amiket partnership. Unbelievable. They only need 10 patients for the BP trial, but unable to find anyone to enroll. They are now 1- 1.5 years behind the schedule they put out just last year.
BP is already a rare disease and Israel's population is only about 8 million, so probably only 500 or so people have BP there. I believe that is why they needed to expand to US. Trial is now a year behind schedule with results in "first half of 2016" Last year they said that results were expected in "late 2014 or early 2015" I'm sure they will issue a pr once first patient is enrolled.
This company has no cash. In the last Zacks article, they say they expect the company to raise 20 million or so, enough to last a year. The will have to double the number of shares - and soon. better off to wait until after next dilution, stock will fall below a dollar. I though ti was a great buy at $1.50 - but only as a quick trade back to $2 before it falls even more after dilution.