Yesterday, EDBL was one of the top movers. The move began with momentum during regular hours and extended into the after-hours session, showing a familiar pattern seen in prior small-cap setups.
Looking back at the ticker's history, EDBL had a similar multi-day run in December 2024, which ended with a warrant inducement deal. In these scenarios, companies reduce the exercise price of outstanding warrants—sometimes issuing additional warrants as an incentive—to encourage holders to convert. This allows the company to raise capital quickly, in a way that functions much like an offering, but without filing a traditional one.
During the recent move, Armistice Capital appeared once again as a known warrant holder. Their involvement often coincides with choppy or “trappy” intraday price action—initial strength, quick reversals, and eventual fades.
Shortly after the rally, the company confirmed a new warrant inducement, lowering the exercise price of 1 million warrants from $9 to $3.50, which resulted in a $3.5 million capital raise.
For traders focused on dilution risk and capital-raising patterns, this setup highlights the value of combining SEC filing research with historical pattern recognition.
A more detailed breakdown of this move and how the setup unfolded was covered in our video, which you can watch here: https://www.youtube.com/watch?v=8hyH3xFcWFw