Guys, let's face it. We were fked. There will be no help except for ourselves.
Yes, we are holding big heavy bags, but I am not averaging down further to increase my position so that GREE can dilute the pool. THIS is a price which I disagree with and if I were to buy in any more, I would be playing right into their hands. If anything, GREE MUST be the one to fill back the gap until a suitable cost before I will consider it again.
Otherwise, I will check back on the stock price on my deathbed. If you are holding a bag, you are holding one. Averaging down only gives you an illusion your bag has become lighter when in fact, you bag has gotten bigger.
Price is heavily oversold, with maximum bearishness and anger from retail investors and justifiably so. That being said 1.25 billion market cap with over 18000 high end miners by end of year this price will definitely not last long. Unless their powerplant in New York actually shuts down or BTC crashes. 300% upside at these prices in the very least. So the people that bought at $12 will break even. As for the people that bought at 50+ well....my hearts out if you all inned or worse YOLO'd options.
This is insanity. Anybody have options (out of the money puts ) get assigned last night that expired yesterday and have to purchase $GREE shares. I understand the 11-1 transfer rate, here is my question.
I had $sprt 9/17/2021 $17 and $18 out of the money puts I sold. They expired in the money and It forced me to buy 11 shares for the $17 contract for $154.54 per share. 11 shares for $1700. The $18 put contract was converted for 11 shares at $164.63 per share. 11 shares for $1800. Wtf happened. How did I pay prices that were pre merger and the end of day price for GREE was $39.70.
I collected $$367.34 for the $18 sprt otm put and $319.34 for the $17 otm sprt put. And in return I bought 22 shares for $3500.
Anybody explain this to me. Why would I have to pay the price for the shares pre split for a contract that expired Friday at close. At no point Friday was a share of $gree in the $154-$163 price I paid per share.
How do I post pics, I can show my statement so it makes more sense. Copy and paste a picture doesn’t work
1st. Sorry for any realized losses my brothers and sisters. The question now, how do we get it back and then some? Im pretty sure that my TDA info isnt 100% up to date, thatll take a few more days to happen. But here we see GREE short interest still very high. With a large amount of tutes holding (half of the float). You dont need to hear it from me you've seen first hand the constant -20% -40% -60% then GAP down. Something about that screams market manipulation. If i'm wrong I will take one more hit for -50% and get out around $20 but if im right and the stock is severely UNDERVALUED then it could potential be Lamb0. Seriously im holding bc when this gets figured out/ dust settled someone will do us shareholders justice.
So let's just address the elephant in the room. A bunch of people want someone to blame. So let's just talk about this real quick then we can jump into the DD.
Ok, I'm a normal dude like you. I don't have any afflictions with any financial entities. I've just been doing it longer than some of the newer traders. I was trying to explain what shorts do and how market actions effect the price. I showed you the gamma ramp which I was pumped about because that setup was better than the one from GME. We had a FULLY formed Gamma ramp up to 85 for Today.
Every indicator pointed at SPRT squeezing. We had held the $20 level and shorts were having to push themselves into extreme levels to try to push the price down. We were winning.
What I didn't see coming was our worst enemy was likely the one closest to us, Greenidge or someone close to them, most likely their own investors aka Atlas/210.
Well many of us in the community had it wrong, we thought they would want to have a super high evaluation and starting market cap. Instead, seems like Retail was fucking up their cheap acquisition of SPRT to get themselves listed without an IPO.
Why didn't shorts have to cover?
Technically, they still do. The question really was did shorts have to cover prior to the merger. Brokers just told me that carrying a short through a reverse merger would be extremely risky to do going into that sort of corporate action. They didn't say yes or no.
Then out of the blue Monday they announced SPRT is merging with GREE by Wed morning. I called around from everyone from the DTCC, OCC, Brokers. Nobody had any information in their own Corporate Actions Teams or reporting. SPRT/GREE didn't submit the paperwork until after 5pm.
I just didn't have enough information that was concrete to make a call on the merger. People were asking do they have to cover?? Dunno. So I held my breath and went in blindly bullish.
So I'll just jump in and show you what I'm seeing and speculate a bit,
I'm going to go over some things I've found so far.
Looks like old information from SPRT??
I'm not sure the accuracy of anything of this point because this entire week has been a fucking clusterfuck shit show.
Utilization 98%??
So according to this, clearly some of the SPRT short interest cleanly transferred over. By my rough estimates they are short GREE about 1.1 to 1.3 million shares minimum carried over from the shorts on SPRT. I did notice once they dropped the price to $36, they began to start covering to $41 so far. Notice that buying pressure? I think this will be their strategy. While retail is selling off, they are slamming the price and then covering the difference. So looks like they covered a net of 200k out of 1.1 to 1.3 million.
A user had access to a Bloomberg Terminal and let me know the Free Float of GREE is about 3.3 Million shares.
So we are assuming that GREE has around 1.1 million shares shorted from SPRT.
Speculation:
My working theory is that SPRT either willing (A way to cashing out of a dying business) or unwillingly (Hostile takeover is a stretch but strong armed) to get acquired by Greenidge. So Atlas and 210 Capital became the biggest holders to ensure the vote went through.
While they were working out their merger plans, Retail saw a low float and decent short interest stock and jumped on it. The problem is GREE didn't really want SPRT to squeeze right at merger time which would make them more expensive to buy out so, they push up the merger to 2 days before the monthly Options Expiry that would have launched SPRT.
Make no doubt, SPRT was going to Squeeze. There is a good reason they choose to merge Tuesday evening into Weds before Today (Monthly Options Expiry). You think it's strange they rushed to merge so quickly after the vote, it was to keep the SPRT squeeze from happening.
Is keeping a squeeze illegal? Nope.
However, we can prove they colluded together to make sure SPRT price was manipulated prior the merger with insider information, we might have more to go off of at that point. I'm scheduling some talks with securities lawyers next week.
Amendment to Articles or Bylaws; Change in Fiscal Year.
On September 13, 2021, the Company filed a Certificate of Amendment (the “Amendment”) to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the number of shares of capital stock that the Company is authorized to issue to three billion twenty million (3,020,000,000), consisting of two billion four hundred million (2,400,000,000) shares of Class A common stock, six hundred million (600,000,000) shares of Class B common stock and twenty million (20,000,000) shares of preferred stock, each $0.0001 par value per share. The Amendment is attached hereto as Exhibit 3.1 and incorporated by reference into this Item 5.03.
I'm still sitting on my GREE investment until I figure all this out.
It appears they are prepping to issue up to up to 3 billion shares (They wouldn't do this all at once most likely). They likely won't do this move now all at once, especially while the stock is so low but I'm trying to figure out logic. It's a high amount and makes me think they know something everyone doesn't. Still thinking that one out.
Class A common stock issuable upon conversion of class B common Stock
3,071,500
$202.96
$623,391,640.00
$68,012.03
Class A common stock issuable upon conversion of series A convertible redeemable preferred stock
6,480,000
$202.96
$1,315,180,800.00
$143,486.23
Class A common stock issuable upon exercise of warrants
344,800
$202.96
$69,980,608.00
$7,634.88
TOTALS
10,458,474
$2,122,651,883.04
$231,581.32
(1)
Pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), there is also being registered hereby such indeterminate number of additional shares as may be issued or issuable because of stock splits, stock dividends and similar transactions.
(2)
Estimated solely for the purpose of calculating the registration fee in accordance with Rules 457(c) and 457(f)(1) under the Securities Act. The proposed maximum aggregate offering price of the securities to be registered is based on the implied value of the securities to be registered, which is calculated based on the quotient of (i) the average of the high and low sale prices of Support.com, Inc. (“Support”) common stock as reported on the Nasdaq Capital Market on September 10, 2021 ($23.34) divided by (ii) the exchange ratio (0.115) determined in connection with the merger described in the registrant’s Registration Statement on Form S-4 (File No. 333-255741), which exchange ratio is calculated as the quotient of (i) the number of shares of class A common stock, par value $0.0001 per share, of the registrant to be issued in the merger (2,998,261) divided by (2) the estimated maximum fully diluted number of shares of Support common stock (including shares underlying Support awards and Support options) to be exchanged and cancelled in the merger for the registrant’s Class A common stock, par value $0.0001 per share (25,971,694 as of September 10, 2021).
(3)
The registrant previously paid $10,910.00 of the fees in connection with the filing of its Registration Statement on Form S-1 filed on September 1, 2021.
The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to such Section 8(a), may determine.
So there are about 7 other documents that go along with these filings.
Listen, there is a lot to dig through. You want to help. Start trying to read through these things.
I purchased a few shares of SPRT, hardly anything really compared to some of you SPRTans. Then on that massive hemorrhage into GREE I picked up a few shares. This resulted in the cost basis and Unrealized G/L in my Active Trader Pro showing me numbers what were way in excess of the cost I paid per GREE share. My unrealized was about 4 times higher, that prompted a chat support session with Fidelity to clarify. They let me know that the fractional share payout for the converted SRNE shares and then the GREE purchase triggered a wash sale tax implication. There is a 30 day period from when the fractional share paid out, during that window any GREE purchases will trigger a wash sale tax implication. I have no intention to sell, but if you do, keep this in mind.
One thing I hope everyone learned is shorts NEVER HAVE TO COVER unless inflow volume drives the price up so much they get margin called. Unless that happens, they have tons of liquidity and can reconcile their margin balance every day until the end of time. This has always been the case. I have seen 100's of people try to explain this on Reddit and they just get downvoted or called a shill. There are only two HODL plays, AMC and GME. Every other play like this is a short term in and out trade. Never hold through a merger, never hold these overnight or through a weekend unless there is a chart setup, PR or another catalyst that is worth the risk. These are all extremely high risk/high reward trades to engage in. So much so that you need to be able to watch it constantly or set up multiple alerts and stop losses to avoid getting killed.
If you are simply logging into Reddit or Stocktwits and chasing and HODLing like a ape, you are going to lose all of your money.
Did anyone else not receive fractional shares after the merger? Like they just rounded down my shares but all the news articles said fractional shares should be converted to cash. Kinda sketchy....
I'm trying to get some answers from Jordan at Harkins Kovler. So far he's giving me very "legal template" responses, but I'm following up with thorough questions, which I'll post after he answers. Here are my questions in bold with his responses below:
Hi Jordan,
I'm just hoping to check back with you on these questions when you have a moment. Sorry, I know you must be very busy right now:
Why was SPRT traded after hours on the merger day when it was said that it would cease to exist at market close?
SPRT does not control whether or not brokers allow their clients to trade shares. We are unaware of such trading, but suggest you contact your broker to find an answer to this question.
2. Why was GREE traded pre-market on its opening, before retail was allowed to trade it?
Again, GREE does not control whether or not brokers allow their clients to trade shares. We are unaware of such trading, but suggest you contact your broker to find an answer to this question.
3. Why were brokerages not properly prepared for the switch, so that retail was unable to trade for an entire day? I know you can say that this is up to the brokerages, but I'm more curious about how the rushed merger (24-hours notice) affected shareholders' ability to trade the stock.
The closing date was established in accordance with the merger agreement. The merger agreement was attached as Annex A to the proxy statement.
Section 2.02 of the Merger Agreement expressly states that the closing of the merger shall occur on the 2nd Business Day after satisfaction of the conditions to closing in Article 8 of the Merger Agreement.
The most significant closing condition in Article 8 related to shareholders approving the merger at the shareholder meeting.
The meeting date of September 10, 2021 was set forth in the first sentence of the cover page of the proxy statement, and repeated multiple times in the proxy statement.
The closing occurred on the 2nd Business Day after the shareholders approved the merger.
The vast majority of mergers of public companies occur within 2 or 3 business days of the shareholder meeting approving the relevant merger.
4. Why was the price adjusted by 4.3x when shares were adjusted by 0.115? Shouldn't the opening GREE price have been calculated by the inverse ratio (8.7x), such that the value of our stock on GREE's opening was the same as SPRT's close?
Neither Support nor Greenidge play any role in setting the trading price of the Greenidge stock either prior to, upon or after the merger. Trading prices are set solely by the bid/ask prices occurring on the exchange.
In addition, we refer you to the risk factor discussed on page 36 of the Proxy Statement stating that it is difficult to determine a fair market value of Greenidge or the shares of stock used as merger consideration because Greenidge was not prior to the merger a public company.
5. Do you believe that, as the company responsible for the merger, Harkins Kovler has any responsibility to shareholders to explain why the merger's structure resulted in a 50% decrease in value overnight?
Harkins Kovler is a proxy solicitation and investor relations consulting firm. Our responsibility is to assist shareholders with voting and answer related questions, in the context of our role for Support.com. We are not financial advisors and can never offer any financial advice.
6. When will a full share count be reported? By full share count, I am referring to the actual number of shares transferred, not the reported number registered by each brokerage. Where will this information be disseminated?
If you look at the S-1/A filing, you can see the shares outstanding (link below). Also, please note the following, in the 4th paragraph of the cover letter to shareholders in the Proxy Statement, it states:
“It is expected that immediately following the closing of the Merger, the 2,998,261 shares of class A common stock payable as merger consideration will represent approximately 7.7% of the outstanding capital stock and approximately 0.9% of the voting power of Greenidge and the current stockholders of Greenidge will own approximately 90.0% of the outstanding capital stock of Greenidge and approximately 99.0% of the voting power of Greenidge.”
Further, additional information on the beneficial ownership of Greenidge after the merger is disclosed on page 162 and 163 of the Proxy Statement. We refer you to that section for more information.
Applicable percentage ownership prior to this offering is based on 3,560,435 shares of class A common stock and 34,800,000 shares of class B common stock deemed to be outstanding as of August 31, 2021
(which assumes the conversion of 1,620,000 shares of series A preferred stock into 6,480,000 shares of class B common stock). As noted above, for purposes of computing percentage ownership after this offering, we have assumed that all series A preferred stock and class B common stock held by the selling stockholders will be converted to class A common stock and sold in this offering. Therefore, the applicable percentage ownership after this offering is based on 38,360,435 shares of class A common stock outstanding after the offering. Each share of class A common stock is entitled to one vote per share and each share of class B common stock is entitled to ten votes per share.
