Shorts piled into GRML today (sell the news event after the Greenland deal). Many are hopeful it will return to mid single-digits after hitting a high of $17.99 shortly after the opening bell...then cratering much of the day to close at $11.06.
A few strange things contributed today. In the morning (pre-market), GRML hit a high of $21.90 around 6:15am. The company put out PR that stated they applied to more than double their footprint in Greenland. They also, odd at the time, announced that they terminated their $50m ATM program that was in place (after only utilizing about $1m of it). At the time, there was a lock-up from a prior deal that would prevent the company from any other offerings until Monday (after 30 day lock-up). Despite that...the dumping hit hard in the morning and continued for most of the day.
In after hours, a release came out: the company produced a new direct offering of $38m but the shares were being sold for $12...well above the $11.19 closing price. It bounced over 20% in the PM period.
Squeeze potential:
* **Massive Short Loading:** Between **21.99% and 25.00% of the entire tradeable float is actively shorted** (643,670 shares short out of a tiny 2.62M share float).
* **No ATM overhand:** By formally **terminating the remaining $48.61 million capacity on their ATM today**, management completely removed the open-market "selling pressure" shorts depended on.
* **A Hard Institutional Floor:** The $38.4 million registered direct offering priced at **$12.00 per share—a 7.2% premium** over the regular session close ($11.19). Deep-pocketed institutions have established $12.00 as the new baseline valuation.
* **No Fresh Borrow Supply:** The 1.76 million newly printed offering shares drop electronically into institutional cash custodial accounts tomorrow morning but they **cannot be instantly borrowed** by retail short sellers (though participating institutions could use the new shares to cover themselves).
* **New Dilution Protection:** The company is entering a **brand-new lock-up covenant** with the incoming investors, keeping further dilution completely off the table for next week.
* **Trapped After-Hours Bears:**The stock surged to **$13.85 / $13.89 in after-hours trading**. Anyone who shorted from 10:15am and held is now down 10 - 20+%.
Any thoughts or anyone else in it?