M Line Holdings Inc (MLHC)

[stervc]

My Phone Conversation with Maxim Group (MAXM)…

On Friday, Oct 12, 2018, I called and spoke to someone in management from the Maxim Group (MAXM) Corporate Headquarters who is an Executive Managing Director there at MAXM. The name of the guy I spoke to was John J. Garrity who is also a Founding Partner of MAXM and serves as a member of the Executive Committee which can be confirmed from the links below:
http://www.maximgrp.com/
http://www.maximgrp.com/contact/
http://www.maximgrp.com/wealth-management/wealth-management-team/john-j-garrity/

Before I begin to explain my conversation, I think it is important to understand that John J. Garrity is very qualified and respectable after researching him further. I would strongly consider what he has informed me about the situation here with MLHC as factual, of which I found to be very good for us shareholders. After reading this post, if anyone chooses to question or doubt the validity of what I stated below, please call John J. Garrity at [phone].

Bottom line… MAXM is retail for MLHC as this is per the words John J. Garrity at MAXM.

Here is what I was told… …keep in mind too, I did not mention the MLHC ticker to him until later in out conversation.

** I asked him a generic question while not mentioning any ticker… If a stock is not current with filing their financials, would MAXM be able to support any dilutive measures in place for a company? He said… first, if a stock is not even current, any claims of dilution are false. He told me that many of the clearing firms these days won’t allow any kind of shares deposited unless the company was current with their reporting obligations. He said many of the clearing firms these days don’t want to deal with non-reporting companies.

** I asked him… What if I had an account with MAXM and wanted to buy and sell penny stocks through you guys? John then told me that MAXM would not allow any of their Advisors to solicit penny stocks to their clients. However, their clients do come to them to invest in penny stocks. When that happens, they make them sign an Unsolicited Letter and an Attestation Letter to remove all responsibility from MAXM because of the risk they believe exist in penny stocks. He explained that such transactions would be considered a retail transaction.

** I asked him… Is there a chance that someone through MAXM could be shorting a stock? He explained to me that in order to short a stock, they have to be able to borrow it. He told me that Pershing, a Division of The Bank of New York Melon, is their clearing firm and the stock would have to be on their list of authorized stocks to short. If it is not on that list, it can’t be shorted through MAXM. This is when he first asked me what ticker am I asking questions about. I told him the name of the ticker, MLHC. He told me that he could check to see if MLHC was on their list of stocks authorized to allow clients to short. He checked. It wasn’t on their list. I must admit, this eliminated thoughts that I had that MAXM maybe could be shorting MLHC as an option for thought.

** Then I told him what was happening on Level II with MAXM and how people were claiming that MLHC was diluting through MAXM. He informed me that they are a Market Maker for over 10,000 Securities. He said that just because they are a Market Maker in MLHC, I wouldn’t read too much into it. He explained to me that they have other Institutional Clients (Market Makers) that might ask them to make a market for them, so they pop up at the Bid or Ask, but with no inventory from a wholesale position. He said that it is strictly from a retail position only.

** He then checked somewhere else in their database. He then went on to say that they have no research on MLHC and no banking relationship with MLHC. He said that MAXM is only there as a Market Maker just as a facilitation for another Market Maker to make a market for retail transactions. He said that there is no way there is any kind of a relationship that they have with MLHC because it’s not on their list of companies that have been approved to even deal with. He stated that MAXM showing up on Level II for MLHC is 100% retail.

** I was like… Wow! I asked him how could he say this? He said that they have what is called a Dark List and a Toxic List. This is a list of stocks that they believe are risky because of not having to matured to certain levels of growth. He checked their database and confirmed that MLHC is on their Dark List; but is not on their Toxic List.

Here is what I learned from my conversation. MAXM is not the Boogie Man. I believe that the MLHC CEO is telling the truth. I believe that the company truly is not diluting. I believe that someone or some people are simply routing their orders through MAXM to deliberately cause a scare to spook investors into believing that the company is diluting through MAXM. After personally speaking to MAXM, I believe that we are definitely in good hands here in MLHC.

v/r
Sterling