Celtics...I have a SLMU stock certificate (SC) so my short position was done with my SC, hence, I, nor my broker, had to go into the open market looking for shares for a short. Brokerage houses can only do this if the SC is deposited.
Moving forward: I too agree that this is one big mess and the most likely ending will be SLMU at 00001 and DSTI getting booted off NASDAQ and subsequently the stock will also get into the pennies. Equity lines are the kiss of death, as well as a death spiral for the stock.
DSTI and SLMU press releases are confusing, the so-called tender has been 'in the works' for a long time, SLMU has a lawsuit against them that I believe will not allow them to do too much with DSTI (I admit I dont know what they can or can't do), DSTI has absolutely nothing, SLMU has something (Arise), but the 2 funds now own Arise or any proceeds from Arise generated businesses. Independently, SLMU and DSTI both have no revenues. The only revenues that SLMU had last quarter were derived from ARISE, and as we all know, ARISE was used as the collateral for the $5.5 converible note SLMU took from the 2 funds. A judge rules in favor of the 2 funds so that means they get monies, not SLMU. I dont know exactly what and how this too will work, but the 2 funds control and have say in Arise matters and revenues and cash flow.
I dont even think DSTI has any revenue generating contracts. I think the SLMU+DSTI share exchange agreement, IF IT OCCURS, will only benefit MM, and that is because he will then be allowed to use an equity line to pay himself back the $15 million that he negotiated himself when SLMU bought his non-revenue generating company. He negotiated himself a sweet deal...Imagine selling the company you are CEO of (private company) to another company you are CEO of (SLMU / public company) for $22 million. and the end result is the shareholders of SLMU are going to pay you something that is worthless?
His only hiccup was that the ARISE revenues didnt come fast enough for him to pay back, even partially, the 2 funds. He would've then used an equity line through SLMU to pay himself back the $22 million, but because the 2 funds took him to court, MM's only option is to put his debt in DSTI and have DSTI pay him.
What did DSTI get from SLMU, other than $15 million in debt.
What assets does SLMU have that went to DSTI.
Arise assets cant go anywhere because the 2 funds own that and a judge decided that issue already.
How else but an equity line would DSTI be able to pay the $15 million in debt? Read my last post as it provides the details on an equity line.
I am sure others like IPWG will post that DSTI and SLMU are great investments and that I am desperate, but in all actuality - SLMU has gone down over the last 5+ months...that only means that LONG investors should be worried, concerned, or have already accepted this investment as a loss. There can be no desperation on my behalf.
I am sure those same people are going to say DSTI will be a great company - HOW AND WHY? What do they have that will make them valuable?
I am even further amused that some (2-4 people) on this board do not see the lawsuits that they can have against SLMU and DSTI.
SLMU investors have a very strong case against MM.
DSTI investors have a very strong case against Peter Lacey.
When I say VERY STRONG, I mean iron-clad!!!
All the Best.
I am long LGHS, AMZG and ZYTO.
