Liquidmetal Technologies Inc (LQMT)

[joshuaeyu]

Why did this crash on volume?

You want some conspiracy. Perhaps I can offer you some "possible" fact.

Bond cashed out his "swing trade account", which trigger the herd to dump. This initially triggered some some smaller investor "stop loss" which account for first wave of downward move. That downward move (with volume) might have triggered the warrant dump (programmed stop loss) which account for the second wave of downward move.

Note this warrant is not Visser but simply one of Steipp legacy dilution move back in 2012.

Chung is not here to smooth out the warrant dump (for warrant conversion deal he did with Visser back in Q1).

This can be nullified in upcoming 10Q (if those warrants were exercised in Q3). IF NOT, it can possibly be the cause (then to be verified on Q4 10K)






On July 2, 2012, the Company issued warrants to purchase a total of 18,750,000 shares of common stock in connection with a private placement transaction in which the Company issued $12,000 in principal amount of senior convertible notes (the “July 2012 Private Placement”). These warrants
had an exercise price of $0.384 per share, expire on January 2, 2018, and were originally valued at $5,053. These warrants have certain anti-dilution and exercise price reset provisions which qualify the warrants to be classified as a liability under FASB ASC 815. As a result of contractually defined price resets, and issuances by the Company under the 2016 Purchase Agreement, the 2014 Purchase Agreement, and the 2013 Purchase Agreement, which resulted in an anti-dilution impact, the exercise price of these warrants was reduced to $0.17 as of June 30, 2017 and December 31, 2016. As of June 30, 2017 there were warrants to purchase a total of 8,046,875 shares of common stock outstanding, which were valued at $1,022 using the Black-Scholes valuation model utilizing the following assumptions: (i) expected life of 0.51 years, (ii) volatility of 51%, (iii) risk-free interest rate of 1.14%, and (iv) dividend rate of 0. The change in warrant value for these warrants for the three and six months ended June 30, 2017 was a loss of $1,059 and $663, respectively. This compares to a loss of $237 and $711 for the three and six months ended June 30, 2016, respectively.

During May 2017, an investor party to the July 2012 Private Placement exercised 2,493,875 warrants at an exercise price of $0.17 per share.
Upon exercise, the Company received $414, and the associated warrant liability of $337 was reclassified to additional paid in capital.