Lexaria Bioscience Corp (LEXX)

[Fallingknife75]

Yep, the theory has been around for a while that the short is one of the Warrant holders and will cover the short when they convert the Warrants. However, the Short position (per Finra) has been over 800k for six months now even with the many warrant conversions during that time frame. Every time there is a big conversion we think the short # will tank and it has not. Even this recent 625K share conversion was set to expire on Sept 15 so it had to be converted prior to then and the most recent short numbers were due to FINRA by the 15th for posting yesterday. One would think that if this batch was the short they would have covered immediately since the price was pushing upward yet the short # remains virtually unchanged. There may have been a timing issue with the update being that the days lined up so closely but we will confirm the cover or not with the next FINRA release on 10 Oct (End of Day).

In the meantime I like looking back at when the short position originated, the month of March. If the big short has just been sitting on the position (as it seems) then most of the shorted shares would be out of the money at the current share price. With the chart in a nice Ascending Triangle (very bullish) and resistance at .48 being tested I would expect to see some big buy covers coming soon.

This is just my thinking on the subject, I have been wrong before.

All the best,

Knife