O.I.; dropping share price. Possibilities.
1) As mentioned Its Friday and prices tend to drop on Fridays and before Holidays.
2) There is a likelihood that some of this decline represents selling in conjunction with Warrant exercise. Remember that there are a number of warrants that expire this month (07/09 and 07/31)
So, When you exercise an in-the-money warrant it allows you to you purchase shares from the issuing company at a lower prices, say, $0.80, and at the same you probably sell some portion of those shares at $1.30 to cover the cost of that purchase. In this case you retain some portion of the shares. Alternatively, you sell them all and retain the $.50 / share difference as profit in your warrant exercise.
Because you are dealing with a time sensitive process you are somewhat constrained by the current market price and will probably sell warrant conversion shares at a lower price than if you were working with shares you already held. (like most of us here!) this would tend to drive down the price.
3) The SEC Notice of described something that is dilutive, an increase in the number of total issued shares. This can result in a lower share price in the open market.
Note that IF this is the result of a warrant exercises, it should result in additional money for company operations. Ultimately good for the company and therefore shareholders. It will take time to reflect in the shareprice.
Use this as an opportunity to pick up some additional shares (i did!)and do not worry about it over the weekend.
