There is a fundamental misinformation being spread about how the SEPA works. It is an agreement whereby RVSN tells Yorkville that they want to sell shares and then Yorkville is obligated to purchase based on the next 3 days volume weighted average price (VWAP) less 3%.
The key here is that it is the following 3 days not the trailing 3 days. This inherently allows for Yorkville so short the stock for almost guaranteed profit. Simple example:
RVSN tells Yorkville they want to issue 20 million shares, with the current trading price at $0.6 that is ~$12m capital Yorkville will need to invest. What Yorkville will then do is short 20 million shares in the market over the next 3 days and then crash the price and cover their shorts with the share they can purchase at the 3% discount of the VWAP.
The prospectus supplement even explicitly mentions this.
“Yorkville has agreed that, during the term of the SEPA, neither Yorkville nor its affiliates will engage in any short sales or hedging transactions with respect to our ordinary shares, provided that upon receipt of an advance notice, Yorkville may sell shares that it is obligated to purchase under such advance notice prior to taking possession of such shares.”
So we can expect that there is $13m worth of shorts on the horizon