Do MMAT shareholders get a share dividend in Nextbridge as well? I’m looking hard and asking all the big players on twitter but am not getting any replies.
All I’m hearing and seeing reported on the S1 and stated by the company CEO is that the shorts who’ve shorted MMTLP should cover because they cannot be holding a short position in MMTLP (which are the preferred shares of MMAT) when the shares are going to be cancelled (I think) in exchange for shares in a private company.
It is stated that FINRA and the shorts actual brokers will force liquidations of other holdings in the retail trader’s’ account holding the short position at any cost. I’m presuming (but I’m not sure) that brokers are ultimately responsible for making good the losses sustained by the shorting activities of their clients but I don’t know this for sure.
My personal view of this scenario is that forced liquidation will indeed happen by the broker to limit their exposure to the substantial losses their client is likely to sustain that the liquidation of their account leaves uncovered.
However, despite my having asked several players including the number two holder of shares in MMTLP (who holds 16m shares) how a short squeeze in MMTLP will automatically bring the profits into MMAT creating a short squeeze in this stock.
Just because everyone “thinks” people will bring their profits from the sale of their shares into MMTLP there’s no guarantee that they will. They might go off and invest in other companies whose share price is running on the release of good news.
That same stock holder above has now been prevented by TD from buying any more MMTLP shares. He can only close his position. The reason TD stopped him from buying more is because they called him and asked him if he would be willing to lend his shares. He refused to do so so they put a trading halt on his account stopping him increasing his holdings.
As usual Interactive Brokers who my main dealing account is with placed a restriction on opening new positions the morning that I was going to buy!
Truly Interactive Brokers seems to be bribed by short market makers to put a trading halt on stocks they are short on. Others would include TP*TW, TS*NP, CL*NV and GD*VM to name but a few recent trading halts of pink current information tickers. Hmmm and everyone keeps saying that the market isn’t rigged!
My post are my opinion only. You should do your own due diligence before investing in any stock or take professional advice. I am not an investment advisor. Kind Regards.
