Titan Medical Inc (TMDIF)

[Element41]

I would not worry for anyone shorting the shares as they can easily hedge or cover their positions with one of the four (F-G-H-I)warrant series. Question is do you hedge or go naked on the short?
When the warrants move up, the percentage leverage is much higher.
$6000 invested in TMD common stock will get you approx. 1000 shares today and that same $6000 can buy you up to 300,000 warrants. Stock goes to say $24 and you call it a day. Shorts lose $18K (or 4x their capital) by having to buy back the stock either on the open market or exercise a portion of their warrants. Are those 300,000 "hedge" warrants worth more that $18k on a $24 stock?? Yes and by much more than 20x their initial capital, some warrants even trading in the money by a few dollars.
Is this a hedge strategy that I would follow, yes, but without shorting the stock in the first place, lol! The risk/reward ratio is just not worth it, even if TMD goes to zero.
Only true winner would be a "naked short" and who in their right mind would do that here inside a nano float!?