So if I were Armistice, and I believed a buyout of Coretec was immanent, I would be exercising my prefunded warrants as much as possible. With a .0001 exercise price they can make two cents on every share sold. This might explain some of the high volume days we've seen recently. At the same time, I would want to keep my overall holdings as close to the maximum 4.99% of the company's outstanding share total as possible, because if there IS a buyout the negotiated price is going to be well more than two cents and I'd want to be holding as many shares as I could possibly be. 4.99% of the O.S. count would be approximately 14 million shares. A buyout of the company at fifty cents per share would mean 7 million dollars in the pocket of Armistice.
What I don't know is whether Armistice might be able to dump a million shares and then immediately go back and exercise additional warrants to bring their holding back up to the maximum 4.99%.