Some food for thought, from KemPharm SEC documents:
"As of January 31, 2021, we had outstanding (i) 18,849,983 shares of common stock, and (ii) 31,476.98412 shares of Series B-2 Preferred Stock."
"As of January 31, 2021, we had outstanding warrants to purchase up to 14,360,807 shares of our common stock at a weighted average exercise price of $7.31 per share and which expire between October 24, 2023 and January 26, 2026. The warrants include a net exercise provision and contain provisions for the adjustment of the exercise price and the number of shares issuable upon the exercise of each warrant in the event of certain stock dividends, stock splits, reorganizations, reclassifications and consolidations."
At June 30, 2020 KemPharm also had $67,271,000 outstanding convertible debt with the following conversion price:
"In connection with entering into the January 2020 Exchange Agreement, the Company entered into an Amendment to Facility Agreement and December 2019 Notes and Consent (the "December 2019 Note Amendment") with the December 2019 Holders that, among other things, (i) amended the December 2019 Notes to (a) reduce the Conversion Price (as defined in the December 2019 Notes) from $17.11 to $5.85 per share"
I could not find more current information on the convertible debt, especially what happened to their conversion rights after the reverse split, but it is still a red flag issue, along with the warrants.
For example, the short sale positions in the stock could easily be the convertible debt holders already selling at "good prices". If so, these short sales cannot be "squeezed" by higher price levels. The bond holders instead would simply convert the debt into new stock shares and provide these shares to cover any borrowed shares (which they may not even have had to do legally, since they had access to the new shares). So no squeeze.
The same could be true for current warrant holders, who may also have sold stock short recently, because current prices are higher than their conversion price. So no squeeze.
Buyer beware.
