They aren't. Finra is protecting the market makers who sold short. Put aside the wild notions of "laundered drug money" and the other nonsensical bs and you have some very compelling facts.
The company released a quarterly report that provided insight into the extremely good financial health of the company.
They company paid in cash for a 500% dividend that despite what some will say can not and will not be revoked because that's just not how it works. Finra approved the divi to begin with.
The company issued on the 24th a PR that said they reduced the share structure by 150m shares thusly lowering the OS and more so the tradable float.
By the 26th almost 1b shares traded of the company stock.
It is highly likely that the CEO is the one who called FINRA to call BS. Of the company is the majority shareholder of common stock and the OS has been reduced to under 200m shares a good CEO would want to know just how in the world his company's stock traded by 5x it's OS and more than 6-7x the tradable float.
Now factor in that all of that "liquidity" sold by mms known as Naked Short Shares to investors prior to the ex-clearing date of the dividend needs to also have a divi paid by the ones who sold those shares to the buyers. So if there are say 200m, 500m or 1b NSS shares out there that have not been covered those holders are owed their 500% dividend. What's more plausible to you, Mexican cartel money being laundered through DTC or a rampantly out of control policy to sell NSS for the purpose of providing "market liquidity" that has found those sellers in a huge jam?
All the spin doctors are here to tell you, scam and drug money laundering but if you have traded in the OTC for any significant amount of time you are well aware of the use of NSS.
Be pragmatic, don't be emotional. What does logic tell you?
Shorts usually laugh at never having to cover their positions because most of the time gains in the OTC are temporary due to a myriad of reasons but then those other stocks don't typically issue 500% cash dividends either.
This is mining, and like oil you can go from rags to riches in a matter of minutes so the fact that a company targeted by short sellers for bankruptcy hit pay dirt in mining does not surprise me in the least.
I'm a buyer. I'm sticking to my logical analysis of the known facts and eagerly awaiting the company's update.
