$CING recently made a 600% move, but what's the endgame?
Here's a 2 minute masterclass on understanding a company's financing options (you need to know this as a short seller):
$NVDA reporting a stake in smaller companies has resulted in some big moves (even if the stake was already known) $SERV
Here's the $NNOX and $SOUN charts:
SEC filings hold the secrets to any stock.
But it can contain over 30,000 words full of legal jargon,
Taking hours to thoroughly read.
Reserving it only for large institutions that can hire researchers with $100,000 salaries.
Until now:
$PEGY - doesn't have enough authorized shares for warrant exercises or preferred stock conversions. Vote was supposed to be July 1st but now on July 19th
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Often we think all small-cap companies want to dilute,
But that isn't always true.
$POL is a legitimate (albeit struggling & debt-ridden) retailer,
With over $500m in revenue in 2022...
Legitimate companies with this kind of revenue can finance operations with loans/credit.
How Security Purchase Agreements / Equity Lines work in small caps:
1) The price of shares sold are usually based on VWAP.
2) The amount of shares that can be sold daily is capped based on average volume.
3) The buyers are usually given "commitment" shares.
For example $ACON
Reverse Stock Split + Issuance of warrants Vote for $PBLA
This could have a downward pressure in the near future on the ticker.
The warrants aren't registered yet, meaning technically they can't sell them,
But often a holder can initiate a short position.
Okay I configured the script more, I’ve added direct links to the SEC site,
@AskEdgarIO
,
@newsfilterio
& Finviz. I’ve also made it look out for potential partnerships with companies like $nvda because if I had made these changes yesterday I could’ve caught $bmr around $3-$4.
AskEdgar Insights flagged to us that:
• $BCEL is undergoing a dissolution
• Shareholders will only receive between $0.05-$0.07 per share, plus a $0.17 CVR.
Which is contingent on achieving certain milestones.
That may take a while to happen.
$CING - Cingulate Inc. reported that as of August 28, 2024, it has 2,179,755 shares of common stock outstanding, following recent sales under its At The Market Offering Agreement and a purchase agreement with Lincoln Park Capital Fund, LLC.
Lincoln Park SPA: The company filed an S-1 this morning to issue an additional 1 million shares. While these agreements typically limit the number of shares that can be sold daily, even small issuances at current prices can generate a substantial amount of capital.
$MLGO also had increased the amount of their convertible note earlier this month ($11M > $30M)
Its convertible at ~$1.10 (almost 30M shares)
A LOT of shares to unload = A LOT of volume needed. And they clearly have the muscle to run it, as we've seen before multiple times
$CING could also try maximizing their shelf as much as possible.
Although they currently don't have the shelf capacity to raise the entire amount they need, a combination of warrant exercises (pending shareholder approval on 8/23) and selling through the ATM and/or shelf could
AI has officially bled into trading,
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1.72 million shares have been issued for $PBLA .
This was due to an exercise of an outstanding warrant,
As voted on by the holders and mentioned in a previous tweet.
By switching over to individual filings,
We asked direct questions,
Discovering the USA was enforcing export controls from China,
But $NVDA had already accounted for growth in other areas to make up for the reduction.
Turning a negative piece of news into not a big deal.
As shown in the timeline of events, CING eventually filed an S-1 and conducted an underwritten offering.
Additionally, they utilized what they could from their ATM prior to the S-1 offering
This time around, $CING may follow a similar route - they've already filed an updated
Warrants: CING has 531k warrants exercisable at $7.02, which could bring in approximately $3.7 million. However, they can’t issue these shares without shareholder approval on August 23rd.
Reverse Stock Split + Issuance of warrants Vote for $PBLA
This could have a downward pressure in the near future on the ticker.
The warrants aren't registered yet, meaning technically they can't sell them,
But often a holder can initiate a short position.
When there is no dilution or the prospect of dilution,
We can't expect the same amount of selling as with other companies.
Increasing the chances of squeezes/pushes,
Creating outliers for short sellers.
As of June 30, 2024, CING reported cash and cash equivalents of just $400k, with enough capital to sustain operations through late Q3 2024 ()
Also, in their 10-Q, then mention needing an additional $12-13 million to support the NDA filing for CTx-1301 and
Lastly, they could go for a PIPE (Private Placement) which they have also done in the past (albeit a small one)
Ultimately, it's not a question of whether the company will raise capital, but rather how.
Even though the F-1 is pending,
By simply asking a quick question to AskEdgar,
It revealed that the shareholder can short the stock and then use the shares to close out their position in the future.
While the numbers seemed to disappoint, $TSLA offered some exciting updates particular around Robotaxis and Optimus.
Check out a summary of the earnings call here:
$CSLR summary of PR
- Eliminates $67.6M in debt
- CEO helped fund the payments to the creditors
- Creditors Carlyle and Kline Hill invested $18M back into the company via convertible debenture
By using the new headline feature,
I was able to quickly see that $ETAO had a rather large registration pending and also increased their authorized shares,
Allowing them to issue more shares in dilutive offerings.
By using AskEdgar,
It's an AI-powered financial research platform.
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$BOF - BranchOut Food Inc. borrowed $1,200,000 from Kaufman Kapital LLC through a Senior Secured Promissory Note, which matures on December 31, 2024, or upon additional funding from Kaufman. The loan carries an interest rate of 15% per annum and is secured by a lien on
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Finding relevant information in SEC filings takes way too long.
That's why we just built AI filing headlines.
So you can quickly see:
• Offering amounts
• Important 8-K disclosures
• Press releases.
In seconds.
Here's an example:
$RR - Richtech Robotics Inc. filed a Form S-1MEF to register an additional $1,087,502.30 in securities, which includes shares of Class B common stock, pre-funded warrants, and placement agent warrants. This registration is an extension of a previously filed Form S-1 and
Increased Operating Expenses
Explanation: There was a significant rise in operating expenses, largely driven by investments in AI projects and other initiatives.
Impact: Higher operating expenses without a corresponding increase in revenue reduced operating income.
Here's a perfect example from one of our waitlist users.
It was discovered using AskEdgar's latest filing AI insights,
That $NVDA had an export regulation issue,
Potentially decreasing revenue from China.
But how do we use this info?
Thanks for the beta access
@AskEdgarIO
The insight tab with all the summaries alone is amazing. Then you have this AI that you can ask anything that goes through filings for you and highlights the things it finds 🤯 The future is wild 😁
$HOLO example below
As a quick recap,
• Over 72,000,000 people use SEC filings every year
• It contains crucial information on any stock
• Limited to those with sophisticated legal knowledge
It's the backbone of financial research.
So, how will you beat them?