Yes, I do. Because the Form 13G clearly states that. The transaction occurred Dec. 31, 2019. The form was registered with the SEC on Feb. 14, 2020, right at the 45 day limit. So yes, they exercised warrants at least that far out of the money (the $3.20 warrants were the lowest priced ones they held - maybe they exercised more expensive ones! Maybe their motive is to get $$$ into Titan coffers!).
Look, something very odd is going on here. I don't know what it is. It should be fairly obvious that exercising these warrants was not done as a straight-forward investment, or they would have just bought the shares on the open market for a fraction of the cost, AND still held all their warrants! Also, such a simple Form 13G shouldn't require the full 45 days to hit the SEC public records; it most likely was being held until the last second to prevent this from being publicized any sooner than absolutely necessary. Again, I have no clue why. But given that amount of lag time, the same thing may have already occurred a couple more times (sold the shares, exercised another batch of warrants), but we won't know until those 13G's become public, if that is the plan. Considering they maxed out their first purchase, it stands to reason that they should be repeating this process. It isn't about accumulating shares; that would be as open market purchases to accumulate 8 or 10 times as many. My only guess is that they have some reason to be clearing out warrants, because they know something is happening (or likely to happen) behind the scenes.
I'm still hoping someone can put forth a reasonable hypothesis which explains why they would be doing this. I've asked before, and... crickets. It remains a big mystery.
I will add to my hypothesis: Since it seems to be about getting warrants off the books, they need to sell these new shares and repeat the process. Let's use some ballpark numbers - let's say our average daily volume is around 250K shares. They need to dump shares; maybe 40% of shares sold have been theirs, or 100K shares per trading day they could sell. 18 trading days required to drain their TMDI holdings so they can do another warrant exercise. That's almost a calendar month. I'm guessing that around mid-March, we will see another 13G posted on SEC docs for another 1.8M warrants exercised (maybe 1.9M since they have now increased # of outstanding shares, so limit is 5% more that the first time), leaving them a balance of around 2.7M warrants.
I'd love to know why they did it. But I'm guessing that the reason, whatever it is, must be powerful enough for them to repeat it.
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Exercise up to 1.8mm of the warrants. That would put anson at 4.9%. Anson can’t go over 5%.
Do you really think anson exercised warrants that far out of the money?
AI
