Magna
Taking current situation.
Let us imagine that we got an announcement today
Share price 4.1 cent spikes to say 5 cents (hopefully more)
Magna takes last 10 days and determines that the average vwap of the lowest 4 days is 3.9 cents.
Magna gets 10% discount and buys 11 million @ 3.5 cents.
Immediate paper profit: 5.0 – 3.5 = 1.5 cents or 43% instant paper profit!!!
That is simplest way I can explain it.
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