brute force - Thanks, kind of what I summized as to what is going on. So within the covenants of this agreement is a share price that will allow Able to sell stock in the open market. I wouldn't be surprised if it is around where we are currently trading at. I don't know how we can figure that out, especialy with a Canadian company. It's hard enough with U.S. based ones that typcially get involved with Cornell. The lower it goes, the more shares that Able will dump into it since their is a factoring mechanism that increases the amount of shares relative to the price.
Able will have this structured to allow them to get the bridge financing funds back quickly and then have what we longs call "free shares" to dump into the market and hence their ability to get massive returns for their clients.
There is also a time lockup period before they can commence their activity, which gives the insiders time to dump as well.
There isn't much volume at the moment, but soon it should pick up with slow decreases in price. They probably will have some kickback schemes in place with the MM's so they can get their cut to keep the price as high for as long as possible.
Since I am writing a "calling out post" anyone want to bet to see how long this post stays out there before it is deleted??
