Naked shorting is probably worse in pink sheets and OTCBB, but it happens on all exchanges from what I understood. Particularly, since a lot of the clearing takes place out of sight, between brokers. Even if the management of a company is aware of these things (in most cases they are not), it will be difficult to do something against it. The SEC should, but is not prepared to do it. It restricts to "fathering".
What is mentioned but not being elaborated in the presentation, is the fact that companies and their shareholders are being robbed, when naked shorting through FDT's brings the price down for a sustained period, during which private placements take place. The least management can do is screen carefully to whom it sells the placement. If the buyers are the same hedgefunds/brokers which have artificially brought the stock down, you are basically helping them in their criminal (naked shorting) activities.
Do naked shorting practices apply to GTCB? Given the ridiculously low share price, I would not at all be surprised if this were the case.
Let's assume, it is the case. Where to look for the culprits?
If LFB were involved, as some have indirectly suggested, the short position would be neutralised without a major effect on the share price. I personally do not believe LFB would be involved in such a scheme.
If other parties (say hedgefunds) would be responsible for eventual naked shorting, the shorted shares would still have to be bought back and since there will be no more placements (following the LFB-deal), an explosive situation remains, since one day the "toxic waste" (FDT's) would have to be cleared and the share price would take off fast.
The downward spiral of GTCB's share price, in spite of the breakthrough of the technology, has brought me a substantial financial loss at this point in time. I will not be able to prove whether this has been normal market working or not. All I can do is benefit from the (IMO) artificially low price and buy more shares, as far as I can.
