NU Ride Inc (NRDE)

[Garyedward71]

SOMEONE PLEASE BREAKDOWN THE DEVIL'S ADVOCATE OF THIS??? ON the surface of this deal it seems to good to be true. This deal resembles those nasty convertables that get offered to those sub penny pinks. Which are often based on 20% discount on the lowest or average price over a 14 day period. Only this deal on the surface seems to be entirely favorable towards Lordstown. The hedge fund is obligated to purchase at Lordstown's command. They can't accumulate more than 4.99% of the corporation. A 5% ownership would activate a poison pill and give them a a seat on the board of directors. They can be required to purchase shares at $7.48. The hedge fund does get a 3% discount based on the average of the 3 day trading price. My take on this is since they can't actually accumulate over 4.99% we've secured a large volume daytrader to play the stock. In my opinion this will stabilize, but slow down the the rate of the stocks increase in value. This stabilization of the stock will encourage conservative investors to take out short term spread position to hedge their stock. This financing will discourage many swing traders as the stock will have less volatility. This deal gives YA a pretty good opportunity as a market maker day trader. The downside is as YA purchases their shares they will sell them at market three day average or above to lock in their 1% to 3%+ gains. Every time they sell there will be additional dilution added, thus slowing the stock prices appreciation. Overall this deal seems somewhat neutral and should stabilize us at around $7.25 and $8.00 per share. If this deal were to give YA better terms it would have motivated the to deploy boilerooms to pump the stock up and short at the top. Any other insights?