Correct, but regardless, they can steal a large number of shares if the company chooses to pay them in stock instead of cash. If they know the company will do that, then they can easily keep the share price deeply depressed and I suspect that is exactly what we are seeing right now...
See the heads they win, tails they win aspect of that deal?? That kind of BS has no business in public markets...
If the company wants to get the share price up to $3, they can probably achieve this by spending less that $3 million. Is that really something they shouldn't do???