I have a theory on why we were shorted so heavily. I think when we entered into an agreement with LDA for finance, we sent out a clear indication that we weren’t expecting much revenue. The problem with the agreement was that we set out a future drawdown clause which provided certainty that no meaningful revenue was expected. So the shorters were confident and LDA could have been a part of this shorting itself.
Now that last call on the finance has been made, shorter no longer have that confidence. There has been no further mention or agreement of future drawdowns so the shorters are now forced to close their positions. This final call creates doubts on the part of the shorters that there may be an expectation of revenue hence no mention of future LDA capital needs.
Whilst any IP deal will now pump the SP, we will need meaningful revenue to sustain that.
Now that last call on the finance has been made, shorter no longer have that confidence. There has been no further mention or agreement of future drawdowns so the shorters are now forced to close their positions. This final call creates doubts on the part of the shorters that there may be an expectation of revenue hence no mention of future LDA capital needs.
Whilst any IP deal will now pump the SP, we will need meaningful revenue to sustain that.