It's always been my belief that "death spiral" financiers make ten times as much from shorting a stock than converting. I believe that they short through a third party somehow knowing they can convert at least at the terms of the agreement which typically is lower than the stock price. For instance with GSCR/SWVC why would Cornell want to start converting shares right after the symbol change knowing what was in the works and that the company was becoming cash flow positive.
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