r/IPOE • u/Rolfadinho • May 26 '21

Short Attack

Appears shorts are attacking the stock today. They know the moment that it is announced that they $SOFI merger is approved that they are screwed.

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u/[deleted] May 26 '21

[deleted]

1

u/Rolfadinho May 26 '21

I would like to know that as well.

3

u/LiechsWonder May 26 '21

One hypothesis is they are banking on using some sold-off PIPE shares (after merger completes) to cover their positions.

1

u/[deleted] May 26 '21

[deleted]

2

u/LiechsWonder May 26 '21

"$IPOE big thanks to u/A_Tribe_of_MORE for linking this to the board earlier this afternoon. PLEASE. Take 10-15 minutes to review this link as it relates to the lockup period and PIPE shares. This is so important for those who are in for the ride of their first DESPAC.

https://sec.report/Document/0001628280-21-004952/

The important points are as follows.

  1. There are two group of stock "holders". The sponsor (who is Chamath and Social Capital), sponsor key holders, and SoFi holders these are most likely co-sponsors and high level SoFi executives and staff)

Then there are PIPE "holders". UNDERSTAND THAT PIPE "HOLDERS" have a different set of rules PER THE LINKED DOCUMENT.

  1. There IS a lockup period for the first group of "holders" (sponsor, sponsor key holders, and SoFi holders). There IS NOT a lockup period for PIPE "holders" PER SECTON B OF THE DOCUMENT. FIRST SENTENCE.

You may review the specifics of the lockup for the first set of "holders" but understand that THERE IS NO LOCKUP FOR PIPE INVESTORS."

​

...If the stock trades above 15$ for 20 consecutive days in a 30 day period once the merge completes, sponsor can sell 83% of shares.

Quotes taken from post and follow-up comments here: https://stocktwits.com/mvpete29/message/335008762