Seems like a master stroke to me. RS hated the shortest dragging down his companies SP when he wanted to CR but couldn’t justify it whilst the company was undervalued. Now with the backing of toyota he will burn what is left of the shorts at current inflated prices. Anyone who is short now not only has to buy back the shares but also the equivalent in rights whilst not being able to purchase the rights,(unless they purchase before the record date) basically when someone shorts they have sold a share which doesn’t exist. the person buying owns an existing share which the short seller will buy later expecting it to be cheaper to buy later. Now as the person who bought the share was buying a real share the shorter now has to give them the entitlement, even though they don’t have it. Seems brilliant and to reward shareholders with some cash reserves with the opportunity for a quick 10% plus any short covering is perfect.
ORE Price at posting:
$7.17 Sentiment: Buy Disclosure: Held
