There is no good reason for this share issue to send the share price down for this growth company that has great prospects.
Except whoever is holding those shares may chose to lend them out to shorters and thereby earn a quid in fees from the borrowers while they wait for profits to bring dividends at a future date. Meanwhile, the shorters might savage the share price. If you doubt this happens, have look at the experiences of Brainchip and Weebit to name just two examples. Apparently the practice is legal, even if arguably immoral. The losers are retail shareholders.
It may have started. 1,089,234 AL3 shares were sold short yesterday. Not a huge percentage, but not a trivial start either. see https://www.asx.com.au/data/shortsell.txt
AIMO GLTAH
AL3 Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
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