Ayala Pharmaceuticals Inc (ADXS)

[ubmmg]

I'm not an expert by any stretch of imagination, but this is based on the observations of other equities.
The typical funds who participate in this type of secondary, know in advance that the secondary is floated around, and have an idea what type of shares and warrants would be offered. Thus, they short in anticipation of the offering. Then, they cover with the new shares, and keep the warrants. They know there are going to be lots of sellers, which will create a selling momentum to take the price well under the offering price. I'm not sure if the maximum return for their "investment" would be at $0.86 exactl or not, but close enough. Remember, the warrants are free but their value will start decaying in time. Win-win for those bastards.