Rennova Health Inc (RNVA)

[nfrequent]

Downdraft, I really appreciate your deep dive. How the word "irrevocable" got by me I don't know, but that is reassuring. A bad faith actor just doesn't do that. It shows Diamantis has complete confidence in the CEO and gives the CEO control that by now would have likely been undermined, if not stripped away, by a predatory investment house. Diamantis appears to be the textbook "angel investor" in RNVA.

Add the new insider trading rules to that, and it is easy to see how the CEO had ALL the leverage to negotiate the Sabby prospectus. Imagine a more typical scenario under the old rules. The CEO doesn't get to make that deal, so the Jamestown reopening becomes less feasible and more dilutive. The near-term outlook is diminished, and yes, investors really would have to weigh the possibility of a RS in their risk calculus in spite of good earnings at South Fork (which would not be as good as they are now or will be in the near future due to much worse fundamentals).

I could go on about how Sabby would have gamed the stock price, making matters even worse. But OTC traders have seen that play out over and over again with other stocks before the new rules. I think the market is catching on now.