Saturday Morning Update — On Riot/Bioptix (backgrounder) — I Couldn’t Make This Stuff Up!
AHEM. The Newly-Minted CEO/Chairman Just SOLD 40 Per Cent Of His Holdings — and, he did so on the last business day of the quarter and year, and in the open market to boot.
That sort of nonsense — by a CEO. . . is usually frowned upon, at public companies. [Full new website on this, here.]
Let’s put to the side (for now) the questions about whether he probably already has some “Kentucky windage” on the company’s year end results — though that is a significant peril here — and let’s just focus on the now-delayed Annual Meeting of Stockholders.
Mr. O’Rouke certainly knows far more fully why the meeting was delayed (and the best face on that is the embarrassing notion that RIOT, despite being a ’34 Act reporting public company for several years, didn’t think far enough ahead — on a rudimentary basis — to hire a proxy solicitor, to get the broker non-vote positions in)… And the worst case is… that he (allegedly) likely knows that a shareholder revolt is forming — of some sort, due to poor operating results, and a crazy increase in equity for management (being proposed).
Yet there he is — selling a huge block of shares on the NASDAQ — at around $28.55, while all his public statements claim the company is a rising star, and has been unfairly targeted by short sellers like Citron — and has thus seen a near term price ditch (which he would say) is entirely temporary. Uh-huh.
I would suggest that he did so, because he knows — in the near term, $28.50 a share is… (nearly) the top.
A sincere late night thanks goes to Billy the Kid for this heads up.
As ever, more to come.
Confidential Nota Bene: But personally, I wonder if he needs it to fund his lawyers, in this 2017 jilted investor affirmative lawsuit — against entities affiliated with the legendary and… mercurial John McAfee. And I additionally wonder if he intends to run that complained-of playbook, but in reverse this time, at RIOT Blockchain.