GNGR did not say they would do a Cash divi,-> it was an option that would obviously spark a reaction to the market. The previous document did not say a cash dividend would be issued but rather what would happen if one was issued.
The previous post stated the following:
So how would the idea of a cash dividend benefit GNGR and you the shareholder?
In order to close out the short position with brokers having to pay oversold shares the cash dividend and probably have to pay you back your investment or even more if the price rises above your purchase price, the brokers could be out 10's of million if they shorted 400,000,000 shares. If they have to refund the buyer even if you paid less than any rise in share price. If GNGR went back to $.10 cents, brokers may have to pay out $40,000,000 if 400,000,000 were shorted. Even at just a penny would be $4,000,000. The higher the share price the more likely they would have to refund investors and also possibly face SEC fines and enforcement actions not being able to close out the short position.
So what are the options for TD, Etrade and others who may have sold short? Attempt to buy out GNGR by increasing the offer that is now $500,000 or call GNGR directly and ask to buy shares before the possibility a cash dividend is issued. Posting a cash dividend with a pay date of 60 days later means those brokers would have 60 days to cover the short by buying your position out so they do not get caught owing you shares they cannot find or they would have to find the shares before the 60 days are up. You cannot find what does not exist and what looks like could be 400,000,000 more or less shorted shares that just do not exist other than held by GNGR and two associates who together own 189,000,000 free trading shares and the CEO who owns 700,000,000 with the rights to unrestrict 200,000,000 would be the only place to acquire the needed shares to close out the shorts.
Regardless of the amount of the cash dividend, the shorts must be closed out. With 108,000,000 registered shares, if a cash dividend on a current GNGR price of $.003 issued a 10% cash return per share ($.0003) on 108,000,000 shares comes to only $32,400 (far less than a company share buy back). That event means only 108,000,000 who own the registered shares will get the cash dividend. If you own 11,000,000 shares you would get a check for $3,300 and if you own 2,000,000 shares you would receive $600 and so on. If a broker bought 10,000,000 registered shares from a market maker but sold 60,000,000, they would have to come up with 50,000,000 to close out the short. The question is: whos shares are registered and whos are not.
Here is where it gets interesting. GNGR has only 16 shareholders of record. That does not mean only 16 people own shares. Etrade could be considered one registered holder that may have 1000 accounts that bought GNGR. 16 holders of record can account for many 1000's who bought GNGR as far back as 2008 that are likely shorted. If there are 16 holders of record, let say Etrade sold 200,000,000 shares and took peoples money for those shares (plus commissions) because Etrade would have twice the registered DTC float, they would not be able to know who owns registered and who does not. All the shares would be lumped together as one of the holders of record. This could be the case for the other 15 holders of record who all likely over sold what is in the true float. If all 16 holders of record sold even the float of 108,000,000 it could be 15x not just 4x that was shorted. Data show
Could they do a divi? Yes they could.
Will they do a divi? Well have to wait and see.
For those who seem to just hate GNGR? move onto something else if this is so bad. Try a money market or index fund. Start your own business and make it successful or buy 10 $.0001 OTCs for $100 each and hope one hits even $.10 to make back $100,000
what ever you decide, GNGR will still be here like is has since 2008 with no issues. Can you say that about the other OTCs you bought since 2008 that are still actively trading?
Heading to Denver for 10 days. PLAY NICE!
AI
