"they are shorting the stock"Call me dense, but that makes no...

"they are shorting the stock"

Call me dense, but that makes no sense. MUFG have fronted up with $3M in cash to buy their 500M shares - how are they going to make a profit if the SP falls? Any shorting activity works against their own investment, no? Whatever happens to the share price - up or down - XTC have $3M of their money to go out drilling with. If anything, the SP is more likely to go UP with drilling results, not down. OK, so MUFG might bail quickly for a short term profit, but so what? Any investor or day trader can do the same. Ultimately XTC still have the cash they put in, and they've advanced towards production as a result of it. Am I missing something?