Taking into account that the short stared to be put on after March 15th I think it was coincidental with the PP anouncment.

I would bet that one of the brokers took a short position against his placement stock, thus no funds required to take his position. Use the short funds to do the placement.

Since the stock has gone steadily down since that time he is in no hurry to cover as he is in the money for the short and soon can nullify his short position when the placement stock becomes free trading on Aug 22.... Now should the stock suddenly jump into the $2.00 range his plan could fall apart.... forced to cover before the stock comes off 4 month hold.... That would be a pretty sight!

Just a hunch on my part... but thats what this looks like to me.

"All securities issued pursuant to the offering are subject to a hold period until Aug. 22, 2011."