$STKH, $1m Market Cap, 600k float, Half Selling, Then Someone Gave Them $3.5m
As this is in my field I felt obliged to talk about this stock, Steakholder Foods (STKH) make food printers that allow alternate meat companies to create veggie steaks of meat instead of just basic mixed burgers, unfortunately they’d been hit by the same capital problem as every other alt protein and the extra problem that they were hoping to sell their printers to said companies who were now all completely broke. STKH was then basically forgotten about, assumed dead, and was down to about a $1 million market cap, with about a 600,000 share float (shares available to trade.)
So down to a 1-2 dollar share price tag, this is where for some reason certain sellers decided to pile in, 15th of July there was 72,731 'selling' volume, by the 31st there was 352,000, up to half of the entire available float. It looks like a big shark Armistice Capital Master Fund Ltd noticed the setup and provided $3.5m of funding to STKH in return for shares at $2 a shot. In combination with the company releasing a new product, perfecta premium plant based steaks, patties and filets. (If you want something done well, do it yourself).
A $1m market cap company given $3.5m overnight. Now someone, I’m not saying who, obviously knew this was about to happen and bought an insane amount of shares on 28th July, a company that previously had an average share volume of about 1000 suddenly saw 33 million in volume, obviously many sellers were closed here, however many more were added as algorithmic traders were triggered by a share going from $1 -> $6. Below you can see the share volume going insane along with the value spikes.
https://preview.redd.it/4wp7yjufwikh1.png?width=2048&format=png&auto=webp&s=0596060a456ef684b1f080792b3310f8cda340f0
[https://www.greenqueen.com.hk/steakholder-foods-funding-perfecta-premium-plant-based-meat-3d-printed/](https://www.greenqueen.com.hk/steakholder-foods-funding-perfecta-premium-plant-based-meat-3d-printed/)
6th of August and the news was released, more spikes, more massive volume, hundreds of millions of trades between $3 -> $7. How many sellers are now trapped? The next selling audit is due on the 25th of August. This is the number that is going to determine the next move, STKH stock currently has nothing to do with the company and everything to do with whatever Armistice wants to happen next.
Armistice have been given the option of giving STKH another $7m in return for shares at $2 each.
Original share count = about 1m
Initial Armistice shares bought = 1.75m ($3.5m)
Additional shares available for Armistice to buy at $2 = 3.5m ($7m)
So possible dilution above the $2 mark? Absolutely, Armistice capital now has the tools to play every part of the puzzle as long as the volatility continues. One thing that can be guaranteed is that this stock is going to go up and down.
Luckily I was tipped off in the Agronomics subreddit and got a position in before the second spike, I have already been in and out of this stock twice. I currently have 9000 shares at about $3.5. I was hoping to be able to write this and get it posted while the stock was low but as I write it is spiking again in the premarket.
This is an extremely volatile penny stock that is going to rollercoaster, I personally believe it is worth a punt for a two-fold jump as long as the market cap is under the new available capital, approach with extreme caution.
Tldr: If you can’t read the above this is not for you.
Note: For those that know me yes I'm still in ANIC, I'll be back posting about that soon(tm).
