Interesting idea Baba. 

I think the share price is being managed very effectively. I have been thinking about the overallotment option.

And to answer your question re the warrants.

UNDERWRITING AGREEMENT

Each Unit shall consist of one common share of the Company (each a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”)

The Over-Allotment Option will be exercisable to purchase of (i) Additional Units at the Issue Price, (ii) additional Warrants (“Additional Warrants”) at a price of $0.035 per Additional Warrant, or (iii) a combination thereof, so long as (A) the number of Additional Units does not exceed 3,272,700, and (B) the number of Additional Warrants (including Warrants forming part of the Additional Units) does not exceed 1,636,350

So follow my logic here… I think it is very typical that the underwriter has the best information available and likely more so when it is a bought deal.

The underwriter had 30 days to contemplate the over-allotment option and yet chose to buy right away rather than wait.

The underwriter had the option to buy additional units (shares + one-half of one common share purchase warrant) or buy just the Warrant. I think the agreement makes a distinction between the warrants bought as a unit for ½ share and the warrants bought separately for a whole share by capitalizing the “W”?

The point is the underwriter wanted as many shares as they could get otherwise they would have just bought the warrants which I would agree with you Baba is a great deal.

Now following what can only be described as very good news the share price is now 75% of what the underwriter paid for the units. The question is why? I don’t think it has anything to do with general market conditions.  And it certainly can’t be part of a strategy whereby the underwriter is selling common shares to have free warrants. I think the share price is being managed for other reasons. Lowering the price for smart money to buy and the frustrated retail investor’s end up selling. We are seeing it here in many posts by a variety of people who think something is wrong.

This is why I try to stay focused on the facts regarding the technology and try to avoid second guessing based on what the share price activity is doing. There will always be efforts to move money out of weak hands. Even the visibility of the short position could be part of that effort.

And let’s consider this for a minute. If the underwriter had waited to exercise their option and bought the units right now what do you think the share price would do? I think the shares are being accumulated by masters. The bigger the prize the bigger the effort.

This is all in my opinion but based on my understanding of what this technology represents and how big it could be it makes sense to me in terms of probability.