SunWorks Inc (SUNWQ)

[SandridgeEnergy]

There should have already been an adjustment again already, the share count went way up since the 10-Q, and the price was lower the entire time. I don't hold warrants so it's nothing to me if they play games with warrant holders, but if I held large numbers of warrants I would certainly take positive action to ensure the contract is enforced strictly. I considered buying the warrants at one point, but I don't feel like also hiring a securities lawyer to represent me, which I think would be necessary.

This is a precarious time for anyone with any ownership in this company. Keep in mind it is in the interest of the management to dilute as much as necessary to pay off the bondholders (because they are the bondholders). They have already diluted a lot, and will need to dilute more. I think the 8-K put the most recent share count above 30M shares, up 50% from just a few years ago. The warrants make it more difficult for the company to get that capital, and therefore I think it would be foolish for warrant holders to trust the company to do things right by them.

Delaying the time that the rate of conversion is adjusted would allow the company to slowly walk down the share price and sell into any volume generated by the market, which is what it looks like to me they have been doing so far.

It's up to you to figure out for yourself whether the management is more interested in paying themselves back, or fulfilling arcane (but important) covenants of a warrant contract owned by small retail investors posting on Ihub.

Whether or not you think management has integrity, very little of they have promised has ever come true, it has always been the opposite.