Innocoll Holdings Plc fka INNL

[agamemnus]

No; I don't even know what you mean by that.


"The short interest as of mid-April is 1.6 million shares."
Self-explanatory.


"The annual interest on shorting shares is between 50 and 75%"
If you short INNL shares, you are paying 50-75% annual interest on that.


"and I understand from my brokers that shorts are fully responsible for CVR payments."
If you short shares you are creating CVR obligations to the buyers. The broker will require shorts to make the CVR payments even though Gurnet Point is not actually making the payments on these duplicated (shorted) shares.


"So at this price, shorts are paying 30-40 cents or so to short INNL."
A 75% interest rate would mean about 40 cents per quarter and the deal closes by the end of Q3.


"And on consumation of the deal, they are break-even"
Shorts, if they hold till end of Q3, are paying more than the difference between the current price and the cash payment of $1.75.


"and have a potential liability of $4.90 per share."
CVR max is $4.90.


"Who is doing this?"
Well, who?


"The share price went down towards the end of the day in sympathy with SPY... but why?"
The price is tracking sometimes SPY and sometimes small cap biotech indexes. That makes no sense.