SO WHAT IS MY POINT?
Between 12/22/2020 and 3/30/21, SOS was blasting out PRs. Some, but not all of the warrants are exercised. If you are SOS, and you want to raise money, you WANT these companies to eventually exercise the warrants so you gain the additional proceeds from them! That’s what they were trying to do.
But, what happened in between then? Hindenburg released their Short Report following the exercise of the warrants on 2/25. It was perfect timing. SOS already was reduced by the exercise of these warrants, and then pummeled by the short report on 2/26.
Since then, none of these warrants have been able to be exercised. As in, SOS has been unable to bring the stock price up to the required minimum exercise price for these warrants for any extended period of time following this short report. Not like they didn’t try - they released press releases on progress on 3/1/21, 3/9/21, 3/15/21, 3/24/21, 3/29/21, then did the 3/30/21 direct offering for $125 Mil, with warrants exercisable at $5.00.
Did they want these 3/30 warrants to be exercised? Of course, they want the money. Did they try?
Well, they PR’d on 4/12/21, 4/14/21, 4/20/21, 5/5/21, 5/7/21, 5/11/21, 5/18/21, 6/21/21, 9/10/21, 10/18/21, 11/9/21………… And where was the stock price all this time. Nowhere close to $5. On 4/7, huge volume day, they could have been exercised, but I don’t think so considering this was not included in the 6 month interim financial report.
They pumped out all those PRs, but were nowhere close to the warrants for the 25 Million ADSs. I have to assume they were expecting that all this news would have enough impact on the price to get them so that those warrants would be exercised.
Well that didn’t happen, and they needed more money, so since the warrants weren’t exercised they had to do another direct offering on 11/10/21 at a loss, for $1.75, cause Maxim probably told them nobody was going to buy in any higher. They tried to offset this a bit with their 11/9/21 update, but obviously that hadn’t mattered.
Now as for the exact reasoning for this most recent offering - I really don’t know for sure why they needed $20 Million so bad. And again Maxim told them nobody was going to buy their offering for anything more than $0.56. I trust them that they really did need it for something, whether that is paying for employees, final payment on $80 mil order, something to do with Texas site, unexpected freight costs - I don’t know. This post is mainly an attempt to try to explain everything that has led up to this point, focusing on the problems with the earlier financing they received in regards to the warrants not being exercised.
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