Titan Medical Inc (TMDIF)

[Element41]

If the stock gets a surprise halt and makes a major announcement, or an unsolicited bid which would catapult the shares on the re-opening well above $6.00, which is possible at any moment, the shorts would get roasted having to scramble to buy back the 3% net naked interest. So how do they limit the blue sky losses, by owning some "I" warrants that sets the high cap at $22.50. Still a big ouch on their pocket book, but at least they cover the worst case scenario at 375% loss. Shorting from $6 to buy back at $3 is a 100% gain. Good risk/reward ratio? There are better hedges elsewhere IMO. This is why I prefer owning the warrants on a stock, when the shares go up, so do the warrants and if the stock gets shorted, the shorters buy the warrants up as well. I like to go into a game winning before it even starts.