I'm sure this make sense to others, but when MK converted their warrants the share price dropped 7-8% on the news. The SP was around 10c and got as low as 8.8c recently.
Now that MK have sold off all or most of their shares the price rebounded by about 10%.
Why is it that this happened? Given that its public news the warrants existed the market shouldn't have been surprised by the dilution. Who holds the shares after shouldn't matter either.
Was the drop because the market knew MtK wouldn't hold the shares long and was worried they might not be able to sell them and if they did flood the market? Is the rebound simply the sentiment of a big player coming in causing the market to get excited?
LYC Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
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