Warrants and options holders continue to apply selling pressure.
They are selling their shares through market makers OTCX and WDCO and, so far, have been content selling at $6.50-$7.00 ($1.30-$1.40 pre-split)
From CVLB latest press release —
“The reverse stock split will reduce the number of shares of issued and outstanding common stock from 78,659,427 pre-split to approximately 15,731,885 post-split. Proportional adjustments will be made to any outstanding warrants or options”
Based on the outstanding warrants & options as of the Q2 6/30/20 report and the # of warrants/options exercised beginning Q3 through today, I estimate the fully diluted share count to be ~18,000,000 (90,000,000 pre-split)
An almost identical share structure to OTRK, which is trading ~$60/share with a current valuation of 1 billion.
OTRK‘s revenue is about 40% higher than CVLB’s. Once CVLB gets listed on the NASDAQ, a $400,000,000 valuation would be more than justified, imo. $400,000,000 / 18,000,000 shares outstanding = $22.22 / share
Although warrants and options holders are profiting hundreds of percentage points by selling at current levels, I don’t understand why they would want to sell for so cheap when the stock could potentially be $22 in a matter of weeks. Not complaining though, as they are providing great prices for buyers.
