Ayala Pharmaceuticals Inc (ADXS)

[cdiddy01]

Because why would they hold onto the dog stock and lose more? They already have all the upside potential locked in with the warrants.

The units were $1.20 each. The warrants do have value and that was what Dew calculated (roughly) when he priced them at $.34 a pop. Therefore, they can dump the losing shares and free up their capital while retaining the warrants to cover them in case this thing runs, no need to keep the shares for upside as well.

Note: They also probably made money shorting this into the offering and used some of those unit shares to cover.