Do not think that Seaside is keeping the price down on their own. What do they care? They have no investment in the stock. They buy the stock at 15% discount and quickly sell it in the open market. Hopefully, by the time they sell the price has not deteriorated to such an extent that they have to sell more than 15% below current price.
Let us put Seaside transaction in perspective. Current price is about 60 cents. Using clauses in the sale agreement, let say us for Seaside the price may be calculated at about 57 cents. Then they get 15% discount, so the price at which they buy stock from company is 48.5 cents. So as long as Seaside can sell at 48.5 cents or above they make a profit. Do you think they can sell at 48.5 cents or higher or not. I think in 99% of cases Seaside makes money in each and every transaction. They just buy and sell. They do not care whether the price goes up or down. They just buy and sell. I would do the same in their position. Note they are doing this type of transaction not just with NNVC, but with many other companies in multiple types of industries. They do not invest in these companies, they just buy and sell.
The style in which they sell is based on their conviction that it is better to sell in an up market when the stock is being bought. Note when we had excellent news that is we had filed with FDA recently, the investors bought the stock because it had good news. However, Seaside sold heavily during that period so that the stock price did not show any gains. That was because this stock does not have good enough volume for Seaside to sell all they buy. Whenever, there is good volume they sell.
Also note that at this price Seaside is buying a lot of shares every two weeks. It is very difficult to sell all those shares in open market. Seaside is coping as best as they can. Currently they are buying about 400,000 shares every week. It is tough to sell that many. On an average they have to sell almost 80,000 shares every day. Note that is about the volume in this stock. Most of it is Seaside selling.
The people who have decided that low company price is not much of a problem is the company. The company decided to make another transaction with Seaside even when the stock was below $1. The company is responsible for this stock price decline, not Seaside. Seaside is just a trader, we cannot hold them responsible for stock price. Why should they care? We ourselves (NNVC corp.) are responsible for what is happening to the stock price.
Seeker
AI
