BRTXQ--Here is exactly what is going to happen here:
Today, tomorrow and Thursday, and for 1/2 of Friday's trading session we will see the same thing. ASCM/GTSM/CDEL on a never ending quest to block the upswings.
On Friday, probably in the afternoon session, the aforementioned MM's will just go away. The price will likely close above .02 cents, possibly higher.
Next Monday we have the final hearing. At that hearing I expect Judge Grossman to declare the POR, "EFFECTIVE." That is the magic word. From that point forward, we shall have no further hinderances in an appreciating increase in share price. Let me explain further.
Right before the filing of BK, Auctus received a significant amount of shares, and tried to convince the former CEO to perform a reverse split, which was applied for, and summarily denied by FINRA. BRTX files bankruptcy and we get the new symbol, BRTXQ.
John Desmarais who served as the company's legal counsel to procure patents for their IP, had also lent the company just over $1,000,000. Obviously, when the company went bankrupt, he was in a double bind. The money he lent the company would garner pennies on the dollar, and so he offered to forfeit the $1,000,000 and buy the company's IP, (remember he knows what they are REALLY worth), for $500,000, and be appointed as CEO of the company to unwind the debt and cancel everybody's shares. In consideration for this magnanomous, (hahaha), offer, he alone would decide what to do with the company and its' debt holders. Auctus, who as previously detailed, was already into BRTX for $3,000,000 and saw what JD was trying to do, so they come up with their own plan. Thus began the legal battle for BRTX between us and JD. JD lost.
So now, here is what we have:
Remember those shares that Auctus received just before Bk? So, pursuant to the swapping of the old debt for new equity, and new equity being issued for new debt, Auctus has been shorting this equity to lock in the trigger price as low as possible, to garner the maximum amount of shares going forward. Experienced traders will recognize this trigger as something related to the VWAP, (Volume Weighted Average Price). In convertible debentures the toxic lenders short the equity because the normal strategy is that the financier gets shares at a 50% discount to the lowest bid in the ten days prior to the closing of the financing deal/registration. But because BRTXQ is bankrupt, we don't have that issue per se.
We know that as long as the Q is attached to the ticker, per SEC/FINRA rules and regulations, the company cannot adulterate their share structure, (cannot dilute, RS or increase AS). Thus, what we have all been seeing is simple shorting. I have studied this issue ad nauseam and have deduced that the only entity that could pull this off is Auctus. They are utilizing their own awarded shares to short against the share price. Think that is not possible? You would be wrong. It is perfectly legal.
So, since Auctus' first move upon getting the POR approved, (remember approved is not effective), they fired the CEO. Remember when everyone was arguing about the 8k and I kept saying it was not coming? I was right. Why no 8K, because the POR has not yet been deemed EFFECTIVE, thus it is still just on paper, NOT YET A MATERIAL EVENT. Next Monday when, presumably, the judge declares the POR EFFECTIVE, you will get the 8K within 72 hours.
That EFFECTIVENESS, will have set the trigger price for the exchange rate of the debt for new equity, and thus the shorting will go away and the price will run MUCH higher, because Auctus will look forward to the date when they can start to sell some of their investment. Being honest, as I always am, I do not know if the 31 day, 61 day, 91 day or 180 day leak out provision will be approved. Presuming the worst case scenario that these new debt holders can sell up to 33% of their shares after the 31st day, I would say that we will have one helluva run from the effective date up to the next thirty days.
What people should be focusing on are these three quintessential points:
1) When the judge declares the POR EFFECTIVE (Likely next Monday).
2) How many shares were given out in total
3) When is the earliest date by which these shares can be sold, (remember at maximum 33% of the shares, each DIP lender, and no earlier than either the 31st, 61st, 91st or 180th day after the date of EFFECTIVENESS).
Hopefully this ends a lot of the questions that keep persisting here, for the betterment of us all.
SPORTYNORTY
