Electronic Cigarettes International Group Ltd fka ECIGQ

[ANIA77]

Well, I have no idea if note holders are shorting or not.. but if we want to speculate that they do...
you are asking why would they drive pps down if they make same money no matter at what pps while diluting? Yes if they only dilute but if they manage to short heavily on the top of diluting to kill pps ... then they make twice as much money... from diluting plus shorting.
Let's say, they 'borrowed' and sold 10 mil of shares @ $1 so they made $10mil. Now they could buy that 10 mil of shares yesterday for $0.04.. so they would have to pay only $400k to return borrowed shares. On the top of that, if note holders are really shorting, they even don't have to worry about buying shares back on a market because company will give them all shares that they need since notes are not paid off and company owes them those shares anyway.
This is all just speculation though... Personally don't have any experience with shorting..