Maxim is the lead market making seller of a short selling scheme to defraud shareholders of rcpi and damage the reputation and investor confidence in the company.
The Maxim Group, LLC has 3 departments all allegedly separate from one another. One has a buy on this stock set at $4 per share based upon what appears to be realistic expectations, but now too low of an outstanding stock estimate.. so price may need to get trimmed to a buck or two from current $4 price target.
The investment banking part of company put together the adverse and now obviously taken advantage of funding agreement that among other things required listing on Nasdaq, after Nasdaq made it clear the potentially dilutive terms of the agreement made shareholder approval necessary for continued listing. Shortly after Nasdaq notified company of imminent delisting on September 22, 2015, Maxim persuaded company to enter into a gross, company will not see $20 million convertible note funding agreement that required listing and average share price over a certain period of time of 45 cents or company would be in breach, jeopardizing release of funds for company to use from restricted accounts and not allowing company to make monthly principal and interest debt payments with stock, which was to be the default way company would make payments unless they decided otherwise by around the 1st of each month, payable by cash or stock on the 11th trading day of the month.
The convertible note funding agreement contained a best efforts clause when selling the stock and a prohibition against selling the stock short. Both of these provisions have been routinely violated by Maxim as the selling agent for at least one, if not both of the convertible note holders.
On November 3, 2015, the company was delisted by Nasdaq. The result of this was construed to be a breach of the contract the company entered into with the convertible note holders and due to the way the agreement was put together by Maxim, both release of funds from restricted accounts and payment by the company with stock was put in jeopardy and company negotiated to get back in compliance while the price of the stock sank down to near 60 cents per share. Neither the company or Maxim or the convertible note holders got rid of minimum average price provision.
On March 25th, 2016 based on pressure applied previously and on this day, Maxim caused stock price to drop below 45 cents per share. Maxim has led manipulated short selling and/or front running sale for note holders to drop price to under a penny since, with selling countless millions of shares of stock, not issued by company when it sold the shares short.
On June 1st and 2nd, 2016, Maxim and other sold more than 25 million shares of stock in RCPI short... in just two trading days.
Company has said it was in breach of minimum average stock price provision of convertible note agreement and appears to have been negotiating from weakness since May of 2016. It made decision to continue to make payments in spite of drop in share price, aiding and abetting shorting scheme either negligently or otherwise in May and may have done so again in June. The company has not released outstanding share data since May 9th, when indirectly by stating fully diluted number of shares was 28.7 million, it indicated common shares outstanding was about 22.2 million after May stock payment.
