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Could RCPI become a pincher play?
Started looking for pincher plays about a year and a half ago for companies I have followed... could RCPI become the first one I have spotted? Thoughts?
I am using 6 day rsi moving up thru 30 and also using stock moving up thru 5 day ema with 10 day ema to confirm upward move. Also looking for slow stochastics moving over 30 to confirm move upward as well as 12 day PPO moving thru 26 day upwards to -55 up from low of -64.5 what else should I look for?
I have identified motive for major player in stock trading to want stock to rise from here beginning friday, see my post 26044 and 26045 on rcpi ihub board.
Friday and TGIF coming soon
Not much longer... should see some nice buying and less selling very soon imo. Maxim, CDEL and NITE would prefer rally wait until Friday, see my post 26044 and 26045 for why. So after price held in check or maybe even down today, I realy think stock should be moving up by Friday or Monday and Pincher play should be in gear by Monday or Tuesday.
If the pincher play, plays out.. we could see stock really jump!
Just need to see PPO begin to curve back up.. slow stochastic to move up thru 30 and we should be on our way.. my price target is 35 day moving average or 14 day rsi over 65, whichever comes first. With strong move.. negative ppo should really move up and stochastic should move up thru 50 and then thru 70, all in a few days time.
Thinking real move should start Friday.
Just my take, but rally may still have a little resistance from Maxim, CDEL and NITE due to how they profit from keeping price in check for just one more day, but once this moves up either Friday or next week I think a double to the upside in classic pincher play has a high probability.
Please see my earlier post 26044 and 26045.. I think the five day low provision and how Maxim and convertible noteholders could profit from it if stock rises is key and more relevant than technical stuff, but that technical stuff could be very beneficial once Maxim wants stock to rally, but for them to really profit, I think they would have preferred rally to remain subdued for another day or two and then take off big to the upside.
Change is in the wind.. Maxim might better profit from having stock rally beginning soon.. and therefore want price to rise!
Might have a little resistance here
It is best for Maxim, CDEL and NITE for rally to remain controlled for another day or two, but I think they may welcome rally on Friday.
Number of O/S shares should be
about 47 million as of the middle of next week.
For exact numbers ask transfer agent.
Today's number is not as relevant as next weeks, since there is a large increase scheduled around June 15th (11th trading day of month).
The golden strand to be found in this otherwise bad news is it appears all, if not more than all of the new shares have already been sold into the market by Maxim between the middle of May and June 3, 2016 on its own behalf and/or on behalf of the convertible note holders who are scheduled to receive the newly issued shares.
MAXM/ CNH scheme revealed (CNH = convertible noteholder)
Up to this point, the profit has been made by Maxim and/or convertible bond holders by selling on the way down and then getting stock payments from company based on lower and lower prices to cover the shares sold at higher prices.
But now we are near pink sheet territory.
My guess is now Maxim/CNH capitalizes on stock that he expects to be paid in lieu of cash in July and August at 80 percent of average price for lowest 5 trading days in 40 trading days preceding company declaring it will paying with stock in lieu of cash (near beginning of month of payment). He only profits from this if stock trades higher!
The stock is ready to bounce technically and now Maxim and convertible note holders can essentially buy at 80 percent of low from last Friday thru this Thursday in July and August when stock might be trading for a nickle or even a dime.
My guess is stock issued by company on 11th trading day of June will be enough to cover Maxim's short position of about 20-25 million shares and now he need not and should not want to drive price down anymore, but he will want to let it rally and rally as much as possible.. he just wants to get the low price in thru Thursday... actually he could let it rally now, but I think he will want to get the lowest buy in price possible, so that should be in by Thursday.
In this scheme once stock is trading at say a dime... he can sell stock paid by company at equivalent of just over a penny in July and August for Huge profits.
This is zero risk game for him... no need to rely on company insider or whatever.. he just waits for company to make payment with stock and viola, he makes a huge profit when he sells the stock they paid him.
Maxim might let stock rally Friday, but may keep bullying it from rallying until then, here is why:
He could find way to profit from rise in stock price once 5 day low is in, because convertible note agreement provides that when company makes monthly installment payments of principal and interest, this can be based on a share price that is 80% of the arithmetic average of the five lowest weighted average prices of the Company’s common stock
during the 40 trading day period ending the trading day immediately before the applicable installment payment date.
The convertible note agreement provides:
Such shares will be valued, as of the date on which notice is given by the Company that payment will be made in shares, at the lower of (1) the then
applicable conversion price and (2) a price that is 80% of the arithmetic average of the five lowest weighted average prices of the Company’s common stock
during the 40 trading day period ending the trading day immediately before the applicable installment payment date.
Since nobody is stopping Maxim, and it might not be in his best interest to have stock go to the pinks.. well I am thinking he might just play stock to capitalize on rise going forward. Thoughts?
My thought is if he wants to sell for profit he might want to let stock rise and then sell stock issued at steep discount into the rise beginning in July/August. Thinking if company declaration of intent to pay with shares around 1st of each month.. 40 trading day rule may allow cheap purchases by convertible noteholders and Maxim in not only July, but also in August.. since there are about 22 trading days per month and we are already six trading days into June.
buying interest damaged by Maxim, is taking time to recover. Proof of Maxim's agressive manipulation of stock price downward selling so many shares so agressively and/or pushing ask downward with such devastating results to thé stock price has led many to lose interest in buying and others to sell if Maxim just shows up with low ask. This should support case against Maxim for stock price manipulation. buying interest and price would soar imo if/when Maxim is stopped from applying further downside pressure on this stock.
Maxim group, Llc, is likely frontrunng
Nice criminal résumé they are putting together
Fraud, acting in bad faith, naked shorting, breach of contract with rcpi and convertible noteholders.
Saw Mullan's Wiki page back to hardly mentioning his performance as ces of rcpi. He must be ashamed to mention it. It was more useful and informative when someone added info related to what has happened under his watch at rcpi imo
Should have rallied by now... and rally should have continued upward from high of .026 last week, except for the unscrupulous Maxim, but still holding out hope for end of week rally.. it just needs to get going.. lets see what Maxim does tomorrow morning.
No effect on Maxim.
I think the idea of having a sell order should work and keep your firm from borrowing shares for shorting.
From today's trading... not much volume after initial push down led by Maxim..
Market appears to be getting its feet, but it did this morning when Maxim came in and hammered that large 800,000 share bid at .0126 in the first few minutes.
RCPI should make info public!
Each time they issue stock, they should put out a press release and likewise for each monthly payment they should let public know if making payment with cash or stock, and the amount being paid with cash or stock. I realize public and investors don't need to know or that by letting investors know it might somehow compromise efforts by Maxim or convertible noteholders to sell stock, but shouldn't public and shareholders know, if not, is this selling by convertible noteholders where only they know how many shares they will receive and sell, kind of like insider trading?
I believe they have responsibility to do so and they should be willing to put their answers in writing.
Thanks for your efforts.. hopefully someone will have stock in their name and ta will give out info and they can share it here.
RCPI advisors not independent of Maxim!
Great find, thank you!
Maybe Jenkins needs to be fired?
My communications are limited to emails. Neither Jenkins or Prince will provide answers to me this way. I put a list of about ten questions together and asked if either Jenkins or Prince could answer the questions they knew the answers to and both refused. The questions included my request for a current tally for shares outstanding,wWhether or not they would be making payment with stock with price of stock so low and whether or not they were aware Maxim and convertible noteholders were in breach of the convertible noteholder agreement.
Jenkins refused to answer a single question and if I PO'd him it may have been by my reply objection to his referring me to Maxim's pdf report, which was pretty insulting considering info I had shared about Maxim and its role in the destruction of the price of rcpi stock. Stephanie Prince refused twice to provide answers in an email, telling me it was "her" general rule to not answer questions this way, but only over the phone.
Here is what Jenkins wrote shortly after May 16th earnings release:
XXXXX,
My role is changing at Rock Creek, and will be less involved with investor relations. We recently retained a specialized IR firm, PCG Advisory, as an outsourced function, where by the Company has a small staff, but a large number of shareholders. There is just not enough time in the day to speak with everyone, and answer everyone’s questions. Stephanie Prince will be your contact at PCG. Her info is below. In the interim, I have attached a recent research report from Maxim, highlighting their current view of the company’s prospects and outlook.
Best,
Ted
Investor Contact:
PCG Advisory Group
Stephanie Prince
He and the board did not and have not responded to my emails to him and them since.
Jenkins and Prince won't answer my questions.
Jenkins won't even give me the time of day.
Maybe this needs complaint to SEC as well. How can company spend so much money on useless info like the fully diluted info they presented in San Francisco and leave out the more salient info on current number of shares outstanding and how much this is expected to change on 11th trading day of June.
This seems to give Maxim and convertible bond holders inside information over the rest of us. So.. my thought remains.. maybe Aldi or Hudson Bay Capital can be persuaded to sell a portion of their convertible notes? Might be better way to invest.
Why not buy convertible notes?
Just a thought, but we probably have enough money pooled together here watching the stock to buy the convertible notes and that is probably safest way to invest...
Maybe we could contact Hudson Bay Capital or Aldi to see if there might be any interest in their selling?
Anyone contacted Transfer agent?
Be nice to find out how many shares are outstanding, not including the warrants, etc.. what are currently out there.
MAXM back, maybe he is trying to show a more reasonable appearance and will let stock rally? He sure has impacted things and it sure appears until now that he has just wanted to drive price down... hopefully he changes his tune and trades the other way soon.
He got on the low ask at the open and was down to low ask of .12 until some buying showed up, which he backed off from pretty fast..
What is Maxim's angle? How does this market maker profit from stock dropping in price from 50 cents just three months ago? Be nice if he decided to make money based upon stock rising in value instead of dropping for a change. He is a stock manipulator either way and should not be allowed to make a market in any security from what we have seen here.
I just hope company or SEC or FINRA puts a stop to his illegal, unethical or downright dirty downward stock price manipulation.
Well hopefully RCPI management will not renew contract for Maxim to be selling stock in their company soon, with current contract set to expire around June 19th.
Keep writing Mullan, board, and SEC!
There is no doubt an abusive sell down of stock in RCPI has taken place. It probably culminated with low price arrived at in last few days for the moment, but a drop from nearly 50 cents to just over a penny in less than 90 days is worthy of an investigation, especially when the financial advisor to the company, the Maxim group on its own and/or on behalf of the convertible bond holders has so clearly violated the agreement by selling the stock short, with what appeared to be an endless suppy of stock and sold in a way to kill any and all rallies and break down any and all tries at support along the way.. this was criminal stock price manipulation.. the more of us that contact the company, the SEC and FINRA the better.
Company seems unaware or unable to see this has taken place and might continue to take place if they take no action to stop it. There is value here.. The IP is worth many millions and the market cap after allowance for debt and bad funding agreement should still be well north of a few million.. but divided by how many shares of stock?
Well at least Maxim's contract to sell stock in RCPI is set to expire in about twelve days on June 19th or so... maybe a market maker who actually makes best efforts to sell for best price could make a difference?
Regardless selling way overdone... we should pop up to two pennies in no time.. woo hoo (says investor whose average price is somewhat north of that, with some stock bought a long time ago that I doubt will ever get back to half of break even.
I believe Maxim has deliberately manipulated price of stock and they were able to do it due to bad convertible bond holder agreement in part, but mostly because no one at company or SEC is looking or observing or thinking how in the heck could they sell so many shares of stock over such a short period of time so agressively... stock they and bondholders could not possibly have owned from May forwards until company paid them with stock?
Thoughts on presentation?
The slides regarding the science look promising.
Mullan should have told us how many shares are now outstanding.
Can someone ask Mullan or Jenkins about Maxim or convertible bondholders acting in bad faith and breaching selling stock short and/or not selling with intent to get best price, both violations of convertible note agreement?
It appears they are buying line that stock price dropped for market related reasons and not due to more than 40 million shares being sold by Maxim, net, net, net from the middle of March thru June 3, 2016. This is hard to believe that with resumes that show investment banking and financial experience that they cannot see what has and is taking place.
Well, the proof will be in the pudding.
They already unjustly enriched the convertible noteholders for the known to occur breach caused by being delisted by Nasdaq and they seem blissfully unaware that Maxim and convertible noteholders did not enter agreements in good faith and have not been acting in good faith, including what appears to be a real manipulation of stock price down by Maxim, which appears to have went really short over the past month or so, where previously he may have only been a little short.. a million shares or so prior to April.
The deal they were sold on is terrible and Maxim's selling of the stock shows they could have easily met their capital needs with at the market stock selling... with best efforts debt could be close to zero by now and stock price at least ten times higher than where it is today... so there is that (shrug).
Maxim was low ask for a few minutes Friday when stock was falling thru previous low. ASCM appeared to be a help to MAXM on Friday and today in efforts to keep price low.
It sure seems like Maxim and/or the convertible bond holders have a significant short position right now, waiting for Dr. Mullan and RCPI to unjustly enrich them by issuing them stock in lieu of cash at close to a penny per share for whatever principal and interest payment is due in June.
From post on rcpi yahoo message board by valuer of love.
All I know is that under Mullan shareholders have been screwed with price per share falling from $30 to under two cents.
Three things that demand shareholder lawsuits are his outrageous unjust enrichment of convertible noteholders and Maxim for the breaches of the convertible note agreement.
The first breach was when the stock ceased to be listed on Nasdaq. This breach was known by both parties to be about to occur when the agreement was entered into on October 15th, 2015, since RCPI received notice from Nasdaq on September 22nd, and was officially delisted on November 5th, 2015.
In return for this known breach, Dr. Mullan agreed to RCPI repaying 3 million of the principal borrowed and a make whole amount of $631,000.
The second breach has taken place from March of 2016 thru June 3, 2016 when Maxim acting alone or on behalf of the convertible noteholders has sold about 25 million more shares than the convertible noteholders and Maxim owned combined. Short selling of RCPI stock is prohibited under the convertible note agreement. Dr. Mullan has done nothing to call attention to this breach or to seek damages for this breach that led the price of the stock to decline from around 50 cents to a price of 1.23 cents as of the close of trading today June 6, 2016.
The third breach was of the minimum share price, which needed to average about 45 cents over the past 40 days for the company to make payments of principal and interest with stock. Dr. Mullan negotiated with the convertible noteholders to be able to make payment, even at the low stock price.
Anyway to write or contact Mullan or does Jenkins serve as kind of a block from investors contacting him?
It could if they arrange alternative funding that is not adverse to shareholders and sue Maxim and convertible noteholders for breach of contract and get out of bad financing agreement.
MAXM and convertible bondholders may be sued for breach of contract. MAXM pulled his bid as soon as bids at .0131 hit.
They also may be found to have violated SEC and FINRA rules.
Whether or not company is aware and will sue is another matter, but from what I have read and seen, the company appears to have grounds for lawsuit and could recover considerable damages and the breach should make contract voidable and open up alternative financing.
Wiki seems accurate regarding Mullan
It seems us shareholders have been the ones assassinated.
Could not include entire wiki, sorry, but had to truncate to fit.
What has happened to the stock price when Maxim and the convertible lenders sold stock with clear intention to drive price of stock down, whether it was shorting or otherwise.. seems wiki entry is recent.. after most of the fall in price.
In reading the wiki... it sure seems that in anticipation of huge share payoff of 20-25 million shares in the middle of June, that Maxim has already sold the shares... and Mullan not only is not doing anything about it, but .. he appears ready to reward them by continuing with bad deal and maybe adding adjunct to it.
RCPI should rally, but Mullan needs to wake up for us to see that rally for sure.
Check out this from wiki on Dr. Mullan.
Michael Mullan
From Wikipedia, the free encyclopedia
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Dr. Michael Mullan is the Chairman of the Board and CEO of Rock Creek Pharmaceutical. As such, he has allowed and possibly aided and abetted one of the greatest shearing of a company's stockholders in the Spring of 2016; watching idly by as the Maxim group acting alone and/or in concert with Hudson Bay Capital and Aldi (convertible noteholders and recipients of payment of stock in lieu of cash for payments of principal and interest at 80 percent of the low price for the stock), has driven the price of the stock from a daily low of 45 cents on March 24th, 2016 to a daily low price of one penny on June 3rd, 2016, by selling as many as 50 million shares of the stock net over that period of time. These sales of the company's stock and not the company's performance have caused the decline in the price per share and appear to have involved massive naked shorting and/or worst efforts sales of stock owned by Maxim and the convertible bond holders prior to the company issuing shares, with the number of shares being greatly increased as a result of the decline of the price in breach of a best efforts sale of stock and prohibition against selling the stock in RCPI short by the parties to the funding agreement entered into on October 15th, without Mullan seeking shareholder approval.
This breach of the contract and of ethics by Maxim and the convertible noteholders has allowed MAXM and/or the convertible noteholders to be potentially rewarded and unjustly enriched by deliberately attacking and lowering the price of the common stock of RCPI from a low of 45 cents on March 24th, 2016 to a low of a penny on June 3rd, 2016. Massive short selling of more shares than have been outstanding at the time appears to have been done by the Maxim group and/or those involved in this scheme.
The attack on the price of the stock in RCPI has included the sale by Maxim acting alone or on behalf of convertible note holders of some 46 million shares of RCPI stock from May 3rd, 2016 thru June 3, 2016, during which time the stock has dropped in price from about 8 cents to about 1.25 cents. This followed Maxim driving the price of the stock down from a low of 45 cents to 8 cents from March 24th, 2016 thru May 3, 2016, during which time it sold about four million shares of stock in RCPI, about one million before 3,750,000 shares were issued on April 15th, and the remainder thereafter.
The Maxim group, LLC and convertible note holders pushed the price of RCPI stock down from a low of 45 cents on March 24th to a low of 25 cents on April 15th (11 trading day of month, per contract), dropping the price from above 45 cents to 25 cents and then were issued 3,750,000 shares of stock by the company on April 15th based upon a price of 20 cents per share (80 percent of the low price of 25 cents) in lieu of a cash payment due of some $750,000 (quarterly interest and principal). This allowed the group to cover the approximately 1 million shares they had just sold (short), and left them with about 3 million shares, which they then sold by May 3rd, 2016. Maxim and convertible bond holders then appear to have sold short an additional 5 million shares by May 16th, 2016 and another 35 million thru June 3rd, 2016.
Based upon a volume weighted low price of about 5 cents, if Maxim and the convertible noteholders had not breached the short selling and/or best efforts provisions of the agreement, it would have been entitled them to being issued another 6,250,000 shares if the payment due was $250,000 based upon a price of 4 cents per share (80% of 5 cents per share). However, company said the stock price was below the minimum price in the equity agreement and they would need to negotiate this amount, probably to an amount greater than what was agreed, if they ignored the requirement of selling on best efforts to obtain best price provisions of their convertible noteholders agreement and prohibition against shorting the stock.
If and when the company under Dr. Michael Mullan's leadership issues stock in lieu of cash payments, perpetrators of the scheme are rewarded with greater than or the same number of shares they shorted, and thus they make money by selling the stock before it is issued.
In spite of this, the company put out a press release dated May 5th, in which Dr. Mullan stated: "The market pricing of the Company's stock likely reflects significant concerns that the Company will be able to continue to finance its development activities and operations. In that regard, based on peer-reviewed scientific publications and regulatory agency controlled clinical data, coupled with an expanding intellectual property portfolio, we are exploring a variety of capital options that we believe are potentially available to us. Therefore, as an adjunct to the ongoing mutual commitment between the Company and the investors in the convertible note, we are evaluating various strategic alternatives, which will ultimately rely on the value of our intellectual property.
MAXM and his crime gang, got much accomplished since driving price down from 2.6 cents to new lows this morning. I think he succeeded in driving down buying interest for the moment. Next week is another week and unless stopped by RCPI, SEC or FINRA he will no doubt be back.
I think now is a good time to buy, especially the final minutes of the trading day. Has anyone seen the PPO for a stock so oversold before? -63.59, but curving.. ready to move up within a few days, I think.
And short term charts are helpful the way this stock is traded.. Also, I think RSI can still be our guide. It really does not lie. One hard lesson I will share I have learned with MAXM's criminal and in breach of contract with rcpi naked shorting and stock price manipulation is.. be patient when we buy... I blew it being afraid of missing out on rally with this stock more than once.. patience.. and either buy fairly early or wait until after 2 pm EST.. look at charts and we see MAXM and/or shorts seem to like to drive the price down in the early afternoon but are usually done by 2 pm or so.. and then from there it is okay to buy, but be patient and wait, especially until the final minutes of the day, just my two cents worth on stock with asking price of 1.2 cents that is much lower than my average price.
I'm still hopeful, long and holding. Value is there providing hope. But for real move up in price maybe back to where stock was a few weeks to a few months ago, Company needs to get out of Maxim convertible note deal and they have sufficient grounds to do so. We have plenty of hope if they get out of the deal, less if they stay in the deal and much less if they get in any deeper with Maxim and the convertible bond holders. Price of stock much lower than it should be at this time, but if maxim keeps driving price down and co issues shares at discount to lows for a few more months the stock will only be worth about two cents. Of course it is a buy here and the real hope and upside to this is if company sues to get out of the deal and finds better funding option, in which case, stock could move up a nickle or a dime from here even if we have suffered serious dilution by then, getting out of maxim deal is that important imo.
Co needs out of MAXM deal. They should be going to court and not negotiating breach of minimum share price caused by other parties breach of best price selling efforts and prohibition against shorting stock in RCPI leading to huge decline in share price, without which minimum share price would not have been breached to begin with. Bad deal and other party has not acted in good faith. RCPI needs to take to court and get out of deal, period.
MAXM equity conditions are not public, they are in the notes themselves, hidden as it were, but they are revealed in the 10Q and unless company makes public, public does not and will not know when shares are issued to convertible noteholders. This is wrong. Even with announcements, minimum price is not made known. Wrong again by company. The company refused to obtain shareholder approval for this bad funding deal and some details are hidden all which are salient. No announcement has been made regarding negotiations, and no word about breach by other party that led to non compliance with equity agreement. It should be noted that Nasdaq wrote company requiring they get shareholder approval of initial Maxim deal they inked June 19th if they wanted to continue to be listed. On October 15th the company inked second Maxim deal and was promptly delisted by Nasdaq on November 3rd, and after negotiations paid thru the roof for delisting in part because of deals with Maxim and their not obtaining shareholder approval and then after both parties knew full well delisting was to take place it was an equity condition of deal and company paid Maxim group and convertible bondholders over $600,000 in make whole penalty alone and paid other interest and penalties for breach it knew was to take place.
If Co does not take legal action and sue for breach, including for short selling and not selling on best efforts to obtain best price, not only will Maxim get away with stock murder, but stock price may actually be worth what it is now trading at, when it could be worth so much more without this bad deal and the short selling shenanigans by Maxim. Mullan needs to do the right thing and sue for breach, get out of the deal and obtain alternative funding.
Here is what Mullan had to say in the 10-Q, while either complicit or ignorant of shorting and stock price manipulation going on leading to non compliance of company with equity conditions in the notes.
Pursuant to the amendment on February 4, 2016 of the Senior Secured Convertible Notes, our obligation to maintain a cash reserve with regards to the Notes will be further reduced, and corresponding amounts held in the Control Accounts transferred to our unrestricted bank accounts, subject to satisfaction or waiver of certain Equity Conditions (as defined in the Notes), as follows: $1.0 million on each of April 16, 2016 and the 11 th trading day of each calendar month thereafter. These Equity Conditions (as defined in the Notes), include, without limitation, the existence of an effective registration statement covering the resale of the shares issued in payment (or, in the alternative, the eligibility of the shares issuable pursuant to the Notes for sale without restriction under Rule 144 and without the need for registration), and a certain minimum trading volume and trading price in the stock to be issued. We filed our registration on February 4, 2016 which was declared effective with the SEC on February 11, 2016. On February 8 and April 26, 2016, the Holders transferred $1,000,000 and $750,000 to our unrestricted bank account. We are currently not in compliance with our Equity Conditions and we are negotiating with the Holders of the Notes to address whether the Notes will be amended or the Equity Conditions waived to permit payment in shares and additional disbursements of proceeds.
Maxm and bondholders are shorting, selling before company issues them stock. This is even though stock is to be issued at 20% discount to low price when company pays with stock in lieu of cash. There have been no filings showing stock was issued since May 16th. Due to short selling stock price fell below minimum price, so stock could not be used to pay until or unless it rises in price or there is a reverse split. However, since Maxim and or convertible bond holders caused violation of low price by themselves breaching prohibition of shorting as well as best efforts to obtain best price when selling, this should put an end to the deal once company sues. My guess is they should and may do this soon, which will open up more traditional funding options.
This is usually when Maxim re-enters.. be careful
Stock has been pushed down in price beyond reason by the illegal naked shorting taking place.
The convertible noteholder and/or Maxim have broken the law and certainly breached their contract with RCPI.
Maxim was paid 1.5 million for October funding deal. Convertible bondholders and Maxim get compensated with more shares lower price of stock is and at a discount. They are in breach of contract, they have run stock down by 97 percent in less than three months. To protect shareholders, to protect company and to open up alternative financing and to get a few million back, company needs to sue and sue now.
The agreement included a prohibition against short selling, and also required Maxim to make best efforts in regards to price it obtained in selling stock. Maxim is clearly in violation of both provisions and has caused the company and especially shareholders immense damages.
The company and Mullan will do wonders for their good name and for their shareholders with a lawsuit. At present company is severely limited by the agreement, and since Maxim and bondholders are clearly in breach, a lawsuit would open up alternative sources of capital and provide substantial capital due to significant damages that can be expected to be rewarded to company when lawsuit is successful.
God willing, stock will rally!
My best guess is stock will go to a dime, once lawsuit is announced by company against Maxim and convertible notes holders.
Higher low for RSI on stock low. PPO and ADX are pinching. So pincher play is ready to take place. Money flow is good and the stochastics also have higher low and appear ready to move up. Maybe, just maybe things get better from here?
There appear to be similarities to May 25th in how stock is trading today... hoping this is a good thing.
MAXM and ASCM bust Rock Creeks bottom. ASCM seems newly active and was certainly at his most active during the first 22 minutes today. Should have known Maxim and shorts could not resist chance to burst the bottom. Maybe we finally rally from here?
Why the newly active market makers, like ASCM?
Company needs to replace Maxim group, that is for sure!
Thanks Family man for bumping my post! If anyone actually gets thru to company and gets some data like:
How many shares are outstanding?
Is company going to sue Maxim group and/or convertible bondholders for breach of contract, including gross violations of anti shorting provision?
Is progress being made finding alternative funding?
Are we going to see many new market makers? Some have become more active last couple days and ASCM is high bid and low ask pre market at 1.32 and 1.45 cents.
Ascendiant Capital Markets LLC is a full-service investment banking, equity research, market making, and securities trading firm focused on public and private growth companies, and institutional and strategic investors. Ascendiant Capital Markets, LLC facilitates mergers & acquisitions and the capital raising activities of public and private companies, and provides related advisory services.
Why the newly active market makers? Is there anything we can glean, gather or take away from these developments?