Ekso Bionics Holdings Inc (EKSO)

[Rhetorical]

Anti-Dillution provisions are largely why Ekso was vulnerable to a short attack. Ekso used to have these anti-dilution provisions, guaranteeing that preferred stock can be converted into ratios that will allow for the cash value to remain constant. What this means is that if the stock falls to 50 cents, preferred stock would turn into twice as many shares as it would at the 1 dollar value.

Ekso GAVE UP THIS RIGHT. They removed the anti-dilution provisions for what I believe was a sign of good faith. I think they had the hopes that the stock was in a place where it wasn't going to fall, so it wouldn't be a problem. I believe this is the reason they were targeted by the Pump Stopper's short attack on Seeking Alpha. Now all their preferred stock aren't worth as much as they would like, so they don't want to give it away - and instead they have to do direct acquisitions in the hope of staying alive long enough to get some more good news.

Going forward, I don't think the manipulation remains other than the article still lingering on the web. I think the stock is too small to be effectively changed. My father (worked a financial planner) said that big firms often can't invest into a small cap company on the open market, because if they buy enough shares - the price will skyrocket on them, forcing them to buy too high, before creating a self imposed crash. I personally believe this is actually a pretty big force that keeps penny stocks out of the threshold of being large cap.

It certainly didn't kill the company yet. They resorted to some dilution to keep their own preferred stock, sort of going back on the good faith part of the deal. That being said, they board still wants to make money, and thinks this won't kill them. My opinion that the Ekso B.O.D. would only make this decision in the hopes/knowledge their preferred stock will be worth much more soon (at least before the end of 2016 is my guess)