Replies to post #4025 on Phio Pharmaceuticals Corp (PHIO)

[Titan V]

When you announce buying a company when you are low on funds, math will be on the shorts' side. Let's hope Geert has thought things through.

[sabaidii2]

"Stock is getting pummelled by shorts IMHO"

Here's the mechanics of dilution:

1) A company (ex: RXI) approaches Big Money investors (no, not Big Pharma)

2) Company arranges to offer them "X" number of shares at a fixed price below the current PPS

3) Big Money immediately sells (shorts) the "X" number of shares they agreed to buy later (driving down the price - though they don't really care what happens to the price)

4) Big Money buys their shares at the agreed-upon fixed price, covering their short position