Rennova Health Inc (RNVA)

[Bidsmaker1]

Up 157% over 2nd quarter with 444.9 million traded shares today. Market makers very comfortable at 33% yields. There are several billion shares not yet absorbed by retail. Shareholders are likely to see high volume without significant changes at these higher yield spreads with little being left on the table EOD

The shareholders may still win the day over longer term since several catalyst can drive this stock. I will first point out that the announced reverse splits seem to be influenced by outstanding warrants.

RNVA is probably being squeezed to do a reverse split to entice the warrant holder to advance funds against warrants. Since RNVA is not cash flow neutral they have to offset revenues from somewhere and the easiest solution is the toxic lender who also hold warrants. With the last AS increase there is no shortage of authorized shares and we already know about the 3.5 billion shares at DTC. The market turned over in excess of 400 million shares today alone and millions of shares have been bought up in the last several weeks. Warrants are being exercised causing RNVAW volume to also go up.

So what does this mean for shareholders?

Risk of reverse split occurring after next 10Q and possibly sooner. If so post adjusted pricing would lose value as market makers dump shares.

I doubt the BOD will cancel either RS since warrants have already been executed.
Possible to see an announcement for firm date of spin off close to or just after upcoming 10Q release.
I do think news and events are still timed to benefit the sale of shares by market makers which means the toxic lender is coordinating with market makers. It’s surprising how many shareholders don’t understand that making a market means borrowers issue shares to lenders and lenders negotiate selling those shares to market makers with market makers timing news and events to set yield spreads based upon volume expectations.
So back to where that leaves shareholders.

RNVA is still a value buy. It still has spinoff ability for two companies. One or both are likely to be front loaded with debt and warrants which could significantly change how RNVA stock adjusts to assets and more particularly to revenue.

Insiders own a majority of the shares of the company. Doing the first reverse splits could potentially be avoided once the 7 plus billion shares are market absorbed provided that the combination of strong 10Q and a spinoff announcement causes PPS to gap up and hold above .05