Here's My Hypothesis + an Open Question
This pattern of sell pressure that started around May 9th could have been executive shares selling off that lasted right up until the moment that the NestBuilder spin-out was supposed to take place on May 18th. Maybe that's what it was. Maybe it was debt conversions. Maybe it was executive-owned forced debt conversions or something else. From May 16-18th or so we had a slight reprieve from the never-ending sell pressure and that looked great. Then it started again moving the stock price to new lows. Then another relented sell off allowing the price to rise (which it seems to want to apart from selling pressure). And now since the 7th another cycle of selling.
To me, that looks pretty obviously like converted shares trying to let the stock rise to get a slightly better price for their shares. In my view, this or something very like it is what has been happening.
My question is this: In the most recent 10Q it lists something like 167M convertible preferred shares—What amount of this selling volume comes from that? The cheaper the price is the larger amounts people are trading, of course, but of the very high volumes, how much of that is the conversion? I think it would be very, very helpful for people who see this as a potential mid- to long-term winner investment if Verus gets some critical things in place to know how much more blood letting remains. Of course the company can't make any statements to that regard, but I suspect there are analysts tracking this stock that have a pretty good idea of how much dilution remains. I haven't seen a post that gives much of an educated guess to this very obvious question.
Rip the Band-Aid off, Anshu, and let's build this company.
