I appreciate you taking the time to discuss the matter.
With respect to your opinion that some may be inclined to sell their shares. While neither of us could possibly know others intent, lets simply review some important facts pertaining to the referenced shares.
2,240,718 shares were issued to certain investors in the private placement conducted from December 2012 through March 2013 priced at .$40. They received 1,120,359 warrants struck at $.50. The Sandor Capital Master fund owns the majority of these totaling 1,668,750 shares. Again, their cost basis is $.40 cents.
6,000,000 shares of common stock were issued to certain investor in connection with a merger on April 22, 2013. That certain someone who owns Tecdev Holdings is Erick Spangenberg of IPNav. A 10% 13G filer who must report any change in beneficial ownership. He recently has further added to his position substantially via the TQP patent transaction that is pending closing as well as leading the recent financing round. I think it safe to presume we will not see any of these particular 6 million shares sold anytime soon and that there will eventually may prove to be far more to his significant and growing personal interest in Marathon.
So yes it's most certainly possible some of the shares could be sold if the investors were inclined to currently take a loss for some reason or another, but I think based on knowing who the majority of the shares are owned by, it's more probable that most have absolutely no intention of doing so.
With respect to your comment about some having free options coming. I'm not sure what you are referencing. I must assume you are referencing the warrants associated with the financings.
While some hedge funds or PIPE funds do sometimes sell common shares they get in a deal and just hold the warrants for free, you have to remember the warrant coverage was just 50%. I also believe the investors in the recent financing were of pretty good quality and more longer term investors. The bankers (Lake Street Capital) who handled the deal are fairly well respected compared to the traditional PIPE players. I don't suspect many, if any, bought the deal for that reason. To support my point, remember the deal was done at market with no discount whatsoever. That's rare as you well know. Most buyers of a deal like that only buy it because they like the deal. Their ability to hedge doesn't exist because the traditional 15-25% discount to market is absent.
With respect to shorting, I think you may have misinterpreted something you read. Generally speaking, all of these transactions would have a strict anti-shorting clause. I'd be highly surprised to learn any deal done by this company stated anything to the contrary.
