By that point there were a ton of retail holders and it was obvious what was coming when the year holding period as up in the Pref B. It was a slow bleed by that point.
Foote had to even come out at one point and get the Pref B holders to agree to a leak out restriction because the narrative of a huge plug of dilution coming was slowing killing the stock.
But the restriction was not very effective. The shear amount of common stock issuable from the Pref B was still going to be huge despite the 5%/3% per month limit.
And sure enough the stock continued down. This went from the $5-$7 range down to a penny.
The Pref B holders have walked off with well over $50 million in cash while the stock has plummeted over 99% in price due to those sales.
That is about as “insider enrichment scheme” as you can get.
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