bball,
Why, in your estimation, are these holders/redeeemers so willing to sell these shares on the market at these levels? Those of us "in the know" LOL are convinced that the appreciation of share value will be significant over the next 12-18 months. Why are these guys so willing to dump them now when it appears that ACTC has finally turned the corner?
Because they are in the business to make money and they are doing just that. Take the "settlement" agreement that pulled us out of default. Each debtholder had their principal amount increased by 35%, we pay monthly redemptions which are going out the door at close to .09 and 10% interest added to final payment date the end of this year. If history repeats with the 10K coming due soon we will probably see shares issued at much less than what is above. As you can see the debt holders are making money by selling some shares now. With the large amount of shares being issued there is no way they can sell in mass as our trading volume doesn't support it. That translates into slow and methodical pressure on the stock.
The debtholders are well aware of what "might" be coming down the pike. They are covered in a big way, they can buy 10 cent shares via the warrants anytime in the next 3-5 years. Share price goes to $1 they can buy and sell for a 10 bagger. I wish I had that to fall back on. The warrants issued in the private placements are always meant to be a "sweetner" to cut the deal. With where ACTC is right now I can promise you it is looking "sweet" to the lenders. With that said, I would be selling converted shares too with the intent of using profits to exercise warrants if the pps takes off. The best of both worlds..
Also, is it a possibility that the MM are in some way artificially compressing these prices for their own benefit in anticipation of a significant appreciation?
There is no doubt MM games that take place. I would be more apt to believe the debt holders are cutting some large block deals with the likes of NITE and ETMM at a certain price and from there the MM's do their thing.(see bold below) Below is a list of some of the ways the lenders can sell their shares.
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Each selling stockholder and any of its pledgees, assignees and successors-in-interest may, from time to time, sell any or all of its shares of common stock on the Over-the-Counter Bulletin Board or any other stock exchange, market or trading facility on which our shares are traded or in private transactions. These sales may be at fixed or negotiated prices. A selling stockholder may use any one or more of the following methods when selling shares:
· ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
· block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
· purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
an exchange distribution in accordance with the rules of the applicable exchange;
· privately negotiated transactions;
· settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;
· broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;
· Through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
· a combination of any such methods of sale; or
· Any other method permitted pursuant to applicable law.
AI
