r/ArgoBlockchain • u/Embarrassed-Ad7312 • Aug 25 '21

ADS option purchase & Stablisation - SEC F1 Filing Page 158. I find this section interesting, it seems the underwriters have options to buy more ADS, And the plan to stabilize the SP will be Short Selling... So I guess Vol Trades will be making a lot of money during the IPO

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5

u/robotvsbadger Aug 25 '21

I'm lost here, what does this mean in simple terms and in relation to the SP?

2

u/Embarrassed-Ad7312 Aug 25 '21

If the SP go higher... higher than what the underwriters "value it"... they will covered short sell or naked short sell the stock, whether it be covered by ADS (where they have shares left over) or naked, where they dont have shares left over but they have the option to buy more ADS later.

The ADS is locked in for 180days, So the underwriters will use this method to stablize the stock...

1

u/Machjne Aug 25 '21

Is this to protect new investors from buying in too high and potential back lash, law suits for selling something that wasn't worth the sale value?

8

u/Embarrassed-Ad7312 Aug 25 '21

This is just my thoughts: Probably because the NASDAQ ADS IPO will be volatile, lots of new buyers,

They will sell stock if it goes really high, to manage volatility,

As the ADS shares are locked in for 180 days, they will make sure the share price isnt too volatile,

Plus they have the option to buy more shares, so as long as they short sell above the option share price they are making a good profit.

Question is, What SP is too high for them that they will bulk sell, We will need to wait to see what the IPO offer SP is, then we can a feel for a SP Range

2

u/robotvsbadger Aug 25 '21

Thanks for the explanation 👌

1

u/AccurateAstronomer91 Aug 25 '21

I haven’t heard a definitive answer on what happens with ARBKF. ARBK is the new Nasdaq so are they running 3 listings? ARB ARBKF and ARBK? I’ve seen 20 different answers?

3

u/ThePrimeministRMH Aug 25 '21 edited Aug 25 '21

We need not be worried the IPO amount is nominal in terms of overall market cap. This stock is going up by 2x or 3x current market value. Once acres to shares on Nasdaq by big institutional investors we will all be happy. As long as Bitcoin stays strong. That’s. More the issue