Rennova Health Inc (RNVA)

[Bidsmaker1]

Retail will be the basis of a RS timeframe.

No matter how you look at this retail volumes will determine how a RS plays out. If not enough volume the lenders will not be able to sell shares to MMs and the lender will demand the company do a RS in order to raise pricing enough that MMs can short the stock and attract new buyers.

The MMs are not in this business to suffer losses and market risk is a big part of how they determine what they will pay for cleared stocks. The higher the market risk the bigger the discount and the end result is more shares are then required to compensate low demand. That is also why the introduction of shares held by DTC will have a floor price that MMs will not trade under. Shareholders will see the floor price by the sideways movement of the stock at a sustained price.

MMs develop a strategy to sell shares and in the case of RNVA the RS is probably the most likely option if a large quantity of shares suddenly enter the market. It would be a huge hit to current shareholders since a RS would mean MMs would short the stock to sell it and the PPS as a result would decline causing further losses to shareholders.

Meanwhile the company is actually generating revenues in excess of 2 million per month and has hard assets in excess of 8 million. Ironically, the stock is very undervalued and once the RS is either off the table or significant news causes increased retail volume then shareholders could see an actual turnaround.