You are correct that the idea that Dr. Drew is selling is absurd, and it not just because he has his reputation to worry about but because more importantly it would be stupid.
The first thing to understand is that Dr. Drew's agreement with Redhawk is for a specific amount of shares and specific percentages l/ royalties per unit sold, but not for a specific amount of money.
Much like you or I if he dumps shares into the bid on light trading days he would lower the amount of money he could make off his shares, so he has no financial incentive to try to lower the share price. So he is not at all like a toxic lender who will be rewarded with more shares if they cause the pps to crash and maybe even make more money. Dr. Drew will only get the exact # shares stated in his contract, so if he were to drive the pps down then he would simply make less money.
Secondly the current value of 55 million shares is about $759,000 at $0.0138 so if he sells his shares before he has owned them for a year he pays $281,000 in taxes for it, whereas he only pays $152,000 if he sold at the exact same price. In fact if he sold his entire holdings next year after with a stock price of only $0.0115 per share he would make more money than if he sold all his shares today at the current price. So yes it makes no sense to assume that Dr. Drew wants sell all his shares right now.
AI
