In your scenario the only way Dutchess makes money is to short the stock before they receive shares so they get more shares at a cheaper price and then cover and sell the shares later at a higher price. Otherwise it makes no sense to me.
For example, let's say they get their first batch of shares at .094 (the stocks lowest bid price over the last 5 days was .10). Now they need to sell those shares above .094 to make any money. Where's the profit in pushing the price down and selling at a lower price? Remember the overall deal is capped at 100M shares and it's a 8M deal.
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