Rennova Health Inc (RNVA)

[Bidsmaker1]

George1234 when shares are cleared to enter the retail market they have no attached conditions of sale.
When the 2.5 billion authorized share increase was dumped into the market it caused PPS to drop from over .03 to its current price levels. It has never recovered to this day despite have one trading day exceeding 450 million volume.

Right now DTC holds over 3.9 billions shares and those shares are yet to enter the market. RNVA is trapped by a toxic debt lender who loaned funds against all assets and convertible stock. A portion of the converted stock that already entered the market was the 2.5 billion shares dumped by Sabby to the market makers.
RNVA also issued warrants at the same time for follow on financing to get funding (from the same people). The warrants require the company has sufficient authorized shares to cover those warrants should the lender/buyer
execute on those warrants.

Since the warrants are being executed and unless they have provisions for a market pricing adjustment then the warrants could be purchased then held by the purchaser at DTC (market makers) until specific market pricing causes PPS to be high enough that the market makers can sell those shares into retail

Which brings me to why there are not one but two pending reverse splits.
If the PPS does not increase enough on the first reverse split the market makers won’t have enough room to walk down PPS even using 30% +/- spread ranges to dump the 3.9 billion shares since retail may not want to take another 98% loss like shareholders experienced just from the last 2.5 billion share dump.

So now there is a problem. How do market makers “make a market” when they have 3.9 billion shares to dump into the market. Typically making a market means selling into news or events. As we saw during the last dump every single positive news cycle was used for dilution. Note that I use the words dump and dilution as one and the same.

So the second reverse split is up to 1/10,000

This is sufficient to cover all the warrants and possibly even the remaining shares held by Sabby.

RNVA has at least 4 significant news/events upcoming
1. 10Q which will have significant earnings increase
2. Spinoff
3. Acquisition news (likely)
4. Another spinoff

The good, bad and ugly

Market makers are making a market to retail and the market risk is that retail might go elsewhere leaving market makers holding the bag.

Market makers knowing retail is on to their market strategy may be forced into buying on the open market just to make the appearance that demand exceeds supply in which case retail flippers will instantly exit their holdings.

The spinoff may be able with lots of PR be able to help market makers recover their investment using large spreads which gives RNVA a better chance to uplist since the spinoff company(s) would most likely include a lot of RNVA debt and warrants.

The first reverse split timing will be very critical for RNVA but it’s the 2nd reverse split that stands to have the greatest impact on retail shareholders since it has the potential to wipe their equity completely out.

That’s how market making works. RNVA is then a clean company, debt free and uplists to a higher exchange. Gets new shareholders and moves on.

The key here will be to watch how market makers decide to sell not only the 3.9 billion shares held at DTC but all the remaining AS shares not currently in the OS. That is where shareholders need to develop effective trade strategies

So to answer your question

The $ return on the number of shares to RNVA does not help them for more then a month of business operations