I have a short position and quite frankly the tender would be very good for me; IF SLMU can tender their shares for DSTI, the end result will be SLMU being in the 0001 range because I believe the 2 funds will end up owning SLMU. My guess is that they will not do anything to support the stock because they will look to do a reverse merger down the line.
If there is no share exchange agreement, then I would think it would leave SLMU in a positon with no business and I would expect all shareholders to sell as quickly as possible.
The share exchange agreement, regardless of the way it goes, should benefit me. I think time is also on my side, the longer it takes for the share exchange agreement to occur, hurts SLMU stock price. Why else would SLMU shareholders sell today for 17 cents a share. SLMU shareholders have been selling for well below the 1/6th price of DSTI stock, that being said, the only question that remains is if SLMU shareholders will continue to sell and bring the price down to 11 cents a share.
There is no desperation on my part because I find it hard to believe SLMU will go above 29 cents (that is the price I will be forced to cover [so called short squeeze]). There is no fundamental reason for SLMU to go above 29 cents, however, SLMU shareholders continue to sell, regardless of DSTI's share price, and that shows desperation on LONG holders. Why else would a SLMU shareholder sell for anything less than 27 cents a share.
DSTI share price is $1.65 today.
Considering that SLMU shareholders will get 1 share for their 6 SLMU shares, then why in the world would they sell for anything less than 27 cents a share.
$1.65 divided by 6 = .27
WHY WOULD SOMEONE SELL SLMU FOR LESS THAT 27 CENTS A SHARE IF THEY ARE GOING TO GET 1 DSTI SHARE FOR EVERY 6 SHARES OF SLMU THEY OWN.
The SLMU sellers, if the share exchange agreement is truthful and upfront, are losing 10 cents for every SLMU share they sell.
If the share exchange agreement is truthful and honest, is a great investment opportunity for LONG HOLDERS. It's an arbitrage investment that little risk (the little risk is very dependent on DSTI maintaining a certain stock price.
As I said, I am far from desperate. In fact, I am more confident with my short position today then I was 2-weeks ago. Moreover, I am tring to add to my SHORT.
Either way this goes (share exchange agreement or not) I expect a profit. I will lose if SLMU goes to 29, but I dont see that happening.