The shorts convert to stock.. so at the moment Hancock has just under 5% (acquired at a heavy discount courtesy shorts) and can pick up the other 10%-15 currently shorted. Then at 20% she can launch an on market bid to gain the other 30% hopefully at a lowered vwap t/o premium (assuming no opposing bid) Surely cheaper than going through the frontdoor? Even that cheaper 5% will have saved her $ / + whatever the other 15% was purchased/agreed for - prob 25c?? So 20% discounted to the ultimate t/o price and if she fails to a competitor, a healthy profit on that 20%. She also has bidding advantage because she can go higher by that hidden premium. Or is this not correct?
STX Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
(20min delay)