Merrimack Pharmaceuticals, Inc. (MACK)

[esad1]

7.5 MM shares of the short interest is the converts..they have a problem as it was easy to hedge when there was no dividend but now they have to eat the dividend. That is why Wells Fargo as Trustee is claiming they should have been paid off while the company thinks not. I agree with the company but they will probably sue later this year. The other shorts are boxed and institutional so they do not care I guess.They will lose the dividend and try to buy their stock ex....I wish them luck as it will not trade that low as too much capital is coming into the company. Will be interesting.

Straight debt was being repaid but convertibles are equity for the most part and most have been redeemed.