Because why would they cover now? Let's say most of the short selling occurred above 2 cents (conservative, probably went all the way up to the 5's), right now we are at 1.3 cents, even with the divy that puts the average short sale at 1.8 cents.
Assuming the pps stayd the same I have a net profit of 10%.
Now you may say right, but don't forget the stock divy, and of course I haven't, because let's say they issue the 1:1 and now the O/S doubles. Well the market is VERY good at adjusting itself and if the price today is 1.3 cents even after the announcement then that is a fair value (sorta) meaning that after the split it will be 1.3 cents / 2 = .65 cents.
Now if most of the NSS is MM activity, then who cares, these guys create the markets and make a FORTUNE doing so, so even at .005 on 20M shares that only costs them $100k, probably less than a days work.
If BIHC and Galo want to play the game AND benefit ALL SHAREHOLDERS, it is simple. Release the record date to drive the price up (other will buy this is a given to some extent) because they will follow it up with a stock split. The stock split (divy - what ever) is a dilution event, everyone knows that, whether it increases capital par value is irrelevant with a $800 basis.
If they then follow this up with a financial disclosure, then YOU WILL SEE A RUN good or bad, doesn;t matter. MM's HATE profitable pinks with divy histories - not good for business making a market in the pinks. Look at all the pinks that pay a quarterly or yearly dividend, they all trade above $1.00 (or mostly) - it's a perfect storm.
Anyway, financial disclosure along with a minimal divy will sky rocket BIHC, as long as they make $1 profit - you will be amazed - it is the nature of the beast.
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