Synaptogenix Inc (SNPX)

[SF Wolf]

Concerning the low float (my estimate is 4 to 5 million shares in the float), last week I was contacted by my Brokerage to lend my shares. The loan rate that was offered was an astounding 47%! That is an annualized rate payable daily based on the share price. (The rate also fluctuates daily).

Of course, the purpose was to make my shares available to short sellers so they could bet against the stock and knock down the share price.

But the loan rate, 47% at the time of the offer, has other implications. It suggests a significant demand among short sellers. It also suggests shorting where the party shorting the stock is desperately looking for shares to cover their short. If a naked short seller has not located a borrow to cover their short trade within 3 days they will need to purchase back the shares they have sold on the open market (or engage in illegal naked shorting). This buy in demand is probably what is driving up the loan rate.

With the extremely low float, and what may be institutional shorting, this stock has explosive potential, to the upside (or downside).