Yes they are not free, thats the key they have to short above 45 or whatever the warrant is. And magically the stock went up to 65 cts after the loan (that was supposedly non dilutive) was announced. Thank you Dan, he just handed them their golden opp to short! But lets think about this, how many warrants are their? Like 200 mill or whatever. To recoup that 41 mill loan on bankruptcy they would have to short almost 100 mill shares at dca of 45 cts and hold short thru bankruptcy. That way , if they pulled it off they git their 41 mill back via the short gain, they got their interest payment and they own the co. Now was there 100 mill shares traded above 45 cts after the loan was announced? No only like 30 mill by my count. But the lenders may have been shorting in March and April when at least 100 mill shares changed hands above 45 cts and as high as 2.90. That was the golden set up for the lenders! ......and here we are at 28 cts.....
Dont get me wrong, the lenders are prob rooting for ecigs success but they may be fully covered either way
