Ann: Indue Acquisition and Funding Update, page-4

Bad news.  The lenders are a "Sydney based Credit Fund" and have been provided options with an exercise price of 10 cents.

Hotcopper poster's have postulated on TFC that the reason >10% of it's capital has been shorted is because of a similar lending facility.

According to the theory, the option provides the lenders a risk free opportunity to short the stock.  To use STL as the example, the lenders sell STL short and buy back when the price drops. Thus making trading profits.  When the price recovers they sell short again.  Repeating the cycle.  Consequently the share price is capped.  The option at 10 cents provides the risk free component.  If the share price rallies after establishing the short position they use the option to close out the short.  (The 10 cent exercise price covers holding costs.)

I hope this does not apply to STL.  But I suspect STL's share price will be capped for 3 years.

I hope I am wrong.