Half of Ryan Cohans shares and all of his call options are subject to 6 month short-swing rule.
The short-swing rule basically states that any profit from sales of securities that were purchased within 6 months would goto the company. https://www.investopedia.com/terms/s/shortswingprofitrule.asp
On Ryan Cohan's 13D form for BBBY it shows the date of his purchases at the bottom. https://www.sec.gov/Archives/edgar/data/0000886158/000119380522000426/sc13d13351002_03072022.htm
As of today, 4,100,000 shares are not subject to the 6 month Short-Swing rule. The rest of his 3,680,000 shares as well as all of his call options are still subject to the short-swing profit rule. All of his call options would come out of the 6th month period on Sept. 1st or 2nd.
Basically, he can't sell his options and almost half his stock unless he wants to donate that money to bbby. Would be crazy if he actually sold his calls during a major runup to donate the money to bbby and help out with debt, but that is a little too retarded for me to think about much.
Him being part of a pump and dump doesn't make much sense, since he cant sell half of his shit and also that the price is barely above what he bought in for. Also, considering he never sold a single stock of GME during any of its runs gives me some confidence that he isn't in it for the money.
Submitted August 18, 2022 at 02:48AM by stlin02
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