Josie:
Because YA gets to convert at a price equal to 97% of the lowest PPS within the previous 30 days, AND because it takes relatively little money/volume to move the PPS of this stock significantly, is it not possible for YA to deliberately short the PPS down to a very low level and thereby establish the 30-day low at an artificially low level. YA then gets to buy shares from Neom at 97% of that 30-day low price, giving them a lot of lower-than-the-bottom-priced shares to cover their short sales, which necessarily had to have been sold at a higher PPS.
In short (pun intended) are not the terms of the convertible preferred a no-risk "license to short"???
Is it not also possible for YA to after using a portion of its bargain-basement priced shares to cover all of its prior short sales, to stop shorting, let the PPS drift higher, and then sell the rest of its bargain-basement common at the higher price.
Then they could start shorting again...and the whole process could be repeated.
Seems to me the terms of the convertible preferred are such as to enable YA to make money in both directions.
Of course, over time - all other things being equal - both the high and the low would gradually sink.
News 
Market Data 
Discover 
