I am sure "O" would agree with me that the aforementioned PIPE funds are exactly what I portrayed them to be. They couldn't give a damn about the company they are funding or the company's share price once they are out of the trade. If it means they have to short the company's stock off-shore to avoid detection/prosecution, in order to make money, then that is exactly what they will do. And do you think this kind of behavior is limited to OTC stocks and the smaller firms? It's not! Goldman and J.P., and other big firms play the game even dirtier with listed stocks and derivatives.
As far as I am concerned; when I am part of a capital raise for a portfolio company, my compensation is 2 and 20. Considering the fact that I am receiving 20% on the back end of the deal, why would I want to force the share price down by shorting the stock when I can buy protection for my position in the options market?
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