Not easy to short. Very hard to impossible because of the low float.
This has disaster written all over it because the low float today is going to get worse when they do a reverse split to maintain their $1 stock price for Nasdaq.
Because of shareholder equity and a few other numbers that a company must meet to remain on nasdaq, TBLT may not be able to do a reverse split. I do not know all the details and specifics but the company may get delisted and trade on OTC within 180 days after they get notified by Nasdaq.
Nasdaq has minimum requirements, other than the $1 stock price, that all public companies must meet and adhere to.
I always thought Toughbuilt would be acquired but my theory has changed because TBLT CEO is not going to get anything from the sale because he only owns 2% of the company.
It would probably behoove him to keep the company and get his salary.
Since he will not be able to raise more capital as a OTC company I am guessing he will slow the revenue growth and get to a point that they will just have flat numbers but be able to pay salaries.
If he runs up the debt due to lack of financing options he can always run the company for as long as possible, file for bankruptcy and then maybe try to sell the company and as part of the deal he can get an employment contract with whomever acquires the company, but if that were to happen Michael would not be getting salary and bonus that add up to $1 million a year. He would take a major hair cut.
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