It is my understanding that predominately shares are borrowed from overseas owners probably controlled through a fund manager.
The borrower pays a fee, about 1% & has to reimburse the owner for dividends. The interesting point is that the overseas owner can not claim franking credits which means franking credits are not reimbursed by the borrower, hence the benefit of borrowing from overseas owners.
The borrower sells the shares but will eventually have to buy them back to return them to the original owner.
In the case of ACR there are no franking credits.
If there is a $25 million payment from Eli Lilly it should calculate to be about 15.6 cents per share.
The borrowing of shares to short them creates far more downside to stocks, than just selling shares that are owned by the seller because of the opportunity of increased volume.
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