Loeb King Capital Management advised its clients

Re. Your Point 2, KWG was not itself a client. The "letter to clients" was a letter to participants in the fund, of which KWG procured a copy (possibly from LK itself, but not necessarily). So when you said, "Presumably, King took the time to inform other companies as well about his plan, just like he did with KWG" I think it's important to clarify that Loeb may have directly informed KWG (and any/all other companies in which the fund had direct investments), but also may not have.

Re. Your Point 3, as you pointed out, their investment in KWG was very small, only about 0.1% of the fund total. Presumably they wanted to keep news of their upcoming winding-down of the fund quiet as much as possible, to maintain value. It's possible that with respect to KWG, they may have quietly tried to find a buyer but didn't find an interested entity, OR in order to minimize the number of parties who knew in advance about the winding-down of the fund, perhaps they just decided that their KWG investment was so insignificant that they wouldn't worry about the loss on disbursement in the open market. Well, I shouldn't say that they wouldn't worry. Every penny counts. But in the big picture, other considerations could have outweighed the losses in their KWG holdings.

Re. Your Point 4, perhaps a small amount of Loeb's holdings have been sold in the market over the past several weeks. They didn't own enough shares to be required to file any sort of reports on sales. They admitted to selling 8 million shares this week. But they didn't admit to whether that was the first 8 million or last 8 million. It's entirely possible that the two big volume days all the way back in mid-September were the beginning of disbursement. Followed by above-average volumes through October, a time when if anything, there should have been slight upward pressure on the price as people assumed that the company is getting closer to having something happen with transportation infrastructure or patent information. So maybe once the cat was out of the bag with Loeb's letter to investors on January 13th, they realized that the stealth game was over and they just dumped the last of their holdings as quickly as possible.

I personally hope that my last paragraph is incorrect, because I would like to buy a lot more shares at 2.5, but I can't arrange for funding until late next week. However, if we see no more selling pressure on Monday through Wednesday, I suspect that Loeb has cleared their inventory and the opportunity to buy at incredible prices may be over. The lack of selling by Desjardins yesterday afternoon, with a last minute rise back to 3 cents at the end of the day, makes me wonder if the well has run dry. I had a gut feeling yesterday afternoon that I needed to grab what I could immediately.

PS; Good post, Goldhunter.