why extend the warrants? further potential stock dilution, though not much The story, as told by Arthur Porcari, is that these are warrants issued during January 2010 as part of a funding to raise working capital. The notes and warrants were sold to two "transaction funds" (I believe that is what Art called them), funds that are traders and not investors. According to Art these funds use the warrants security to short the stock in what is essentially a riskless proposition provided the shorts sell the stock above the warrant strike price. According to Art one of the funds messed up with half of their warrants and asked Kandi for an extension to try to salvage their position. Art got mad as hell about the extension. Others were more pragmatic figuring that a few more weeks of pressure on the stock price was no big deal.As to why Mr. Hu consented, Art figures that Mr. Hu is not conversant with the fine details of stock market manipulation. My though is that Mr. Hu saw an advantage in staying on the good side of the funds that helped finance Kandi in its hour of need. Only Mr. Hu knows.I don't think it has any appreciable long term effects.Denny Schlesinger
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