How To Trap a Naked Short ?
Here is a theoretical scenario I am putting forward...
From the 10K
"On September 28, 2018, the Company, consummated a real property purchase and sale transaction (“Setco Property Purchase Transaction”) with Setco International Forwarding Corporation, a Texas corporation (“Setco”), pursuant to which the Company purchased a 16.84 acre tract of land from Setco, located at 13000 S. Lyndon B. Johnson Freeway in Dallas, Texas, for an aggregate purchase price of $11,000,000 , paid as follows:
1) $1,125,000, by the Company’s execution and delivery of a Real Estate Lien Note made to Setco (the “September 2018 Note”);
2) $4,875,000, by the Company’s issuance to Setco of 15,000,000 shares of the Company’s common stock (valued at $0.325 per share); and
3) $5,000,000, by the Company’s transfer to Setco of the Company’s 51% ownership interest in Payroll Express."
GXXM claims the 15 MM shares were restricted and all of October the stock price remained around 1$. Setco could not sell so they engaged a naked short seller to NSS the stock...the SP fell from 1$ to 20c by end of 2018 and from 20c to the current 0.14 c since...
As the stock price was dropping Carl decided to sell the company to MMMM and a reverse purchase was put in place...the consummation of a reverse purchase by MMM would devastate the naked short sellers and this is one of the only ways to trap them short of watching your company's stock go to the dogs...I have seen enough companies taken to the shed by the NSS gang and the SEC is powerless to stop it...
Now there are two Qs that come to mind...
First, is there incontrovertible proof that the deal made was for "restricted" shares and not "unrestricted" shares...
Second, why did Setco claim that GXXM did not have clear title to its 51% share in Payroll Express, and if so who owns PE right now...(are they in operation ?)
