Hotrod: I forgot that you had that condition. I was frustrated at the response your legitimate question got.
It's important DD to understand how these vehicles work if one is invested in a company that employs them. The terms are all set forth in public filings and the resultant selling and SP decrease are expected to occur. It isn't "market manipulation" and, unless they short more than their "offsetting long position," there is nothing illegal (or naked) about the short sales.
I do think it is immoral for management not to explain in layman's terms to shareholders what to "expect" from these financings. They set them forth as "risk factors" in the S-3, but they are largely ignored by shareholders. Perhaps if you understood this was on the way, you might have wanted to sell some shares in the .50's and stock up after the CP shares are all converted.
The best way to learn about how the convertible preferred shares have specifically impacted then EDIG SP in the past is to review the activity following the issuance of the Series C CP shares.
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