This means the float is now down from 190m shares to only 3.2m shares (extremely low). There will be some number of people who don't realize this is a reverse split and think the stock is gapping up 6,000% and just buy blindly. The split is effective at the end of today (5pm EST) which means we will see the gap on Monday. With only 3.2m shares in the float it won't take many people to squeeze this thing like AEZS, KBIO, AQXP etc.
Just a heads up - I'll be watching closely for a long if it gets squeezey :)
EDIT: Someone just brought to my attention (per the PR) this also means that more series C warrants will be exercisable for the next 25 trading days so the stock will ultimately be diluted again. IMO this provides a great short opportunity AND a great long opportunity. There will be obvious selling from the warrant exercises (which is what dropped this from $2.50 to $0.05 in the first place), but the float is also much lower again which means it has more potential to squeeze. Anyway, just worth watching. No real bias right now since it can make huge moves either way. Let's see what Monday brings.
Submitted December 11, 2015 at 08:43AM by ghostofgbt http://ift.tt/1SSfEaD
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