RE: Shrewd Shorters27 Oct 2020 15:54
Whimax, thought the value per share to be attributable at the time of the demerger &, therefore, that would be what the shorter has to pay the owner of the borrowed shares at that moment in time. Theoretically (don't for one minute suggest likely), if the Accustem valuation went down, the owner would have benefitted from a 'premium' payment. So, if value is established/paid at time of demerger In the event Accustem was sold, the owner of the borrowed shares would have no further rights.
I accept, the above is unlikely, but does anyone know for sure how shorting works in the current circumstance. I know shorters have to pay over dividends declared should they be short through to an ex-divi date, so using that as a guide hypothisised accordingly. Re any other news, yes that can happen at any time, but the shorters are ignoring that anyway.
In the highly unlikely event I was correct there would be a benefit to holders at the time of the split. The shorters shares would no longer exist which would mean the remaining shares increase in value.
Hopefully, failing the above, we should expect a mad scramble to close positions.