The Effect and registration are now filed.
Looking back at yesterday, the only possible seller with that number of shares would have been Smithline. IMO, he obviously had doubts the offering would produce enough money to pay the debt so just as he was converting and selling into any news item, he was able to convert and sell a ton of shares at 7 cents.
Now, who would have been the one that would have been buying all those shares? IMO, there is only one answer to that also. It had to be Paulson to protect the offering. You will probably see a form 13 filed in a few days indicating they have more than 5% ownership.
Will Paulson keep those shares? I doubt it.
