Short selling of RCPI stock thru MAXM violates convertible note holder agreement. The convertible note agreement prohibits the note holder or Maxim acting on their behalf from selling shares of the company short or otherwise manipulating the price of the stock downward.
Any reasonable observer of trading in the stock in RCPI would conclude MAXM is selling, driving price of stock lower and violating the anti short sale of the stock provisions of the convertible note agreement, an agreement which the board, Mullan and Jenkins entered into without shareholder approval as required by Nasdaq, their fiduciary responsibility to shareholders, and maybe even the by-laws of the corporation.
In my observation of trading on level two, it appears Maxm, sometimes joined by a few other market makers such as cdel and nite appears to attempt to lower price of stock several times each trading day. I have not seen Maxm at the high bid, but they are often at or near the low ask, often at key times, such as in order to kill a rally in the price of the stock.
If someone can, please ask Ted Jenkins, Mullan or the board if they are going to stop Maxim and convertible bondholders and sue for breach of contract and unjust enrichment from one or all of their breaking the short sale portion of the convertible note agreement? It appears the breach of contract by MAXM short selling for themselves of clients, should provide the company grounds to get out of the convertible note agreement, recover substantial financial damages and to seek alternative financing, and if they were to pursue this, and not issue shares to Maxim, there could be multiple millions of shares Maxim and convertible bond holders may have to repurchase on the open market helping company stock recover from the recent bear raid that had dropped the price of the stock and market cap of the company far below what it otherwise would have been.
If company proves not to be shareholder friendly, then I think complaints need to be filed with SEC, and possibly legal action initiated to force a shareholder meeting, which should have a beneficial impact on our investment in the company.
