To be honest, the EIGH corporate action never went thru in the past. The SEC was notified and did nothing to enforce the settlement rules and regulations of an identified naked short position. Correspondence between brokers even identified fails to deliver in the 8000 Inc disclosure statements. Also, If you remember, there were a few solutions to resolve this private security trading illegally on the OTC. One of them was to cancel all common and transfer to preferred with a new cusip. That cusip was created successfully. So it really boils down to how does a hedge fund take over the custodianship of a private entity that should not be trading electronically in the first place?
Well if the financing is there to support any reporting and handing fees with OTCM and the TA, Signature Stock Transfer, then I guess we shall see how it plays out.
The problem is with the OTCM IDQS system. After all fillings are up to date and fees paid that need to be reviewed and processed, there is no guarantee any enforcement will be made. The 15c211 quotation process is broken. In my opinion, it is no different than CRGP (formerly their TA was Signature Stock Transfer) going private corporate action is stuck in right now. The attempted hijacking over custodianship certainly made things interesting (somehow quotation was granted and it traded for a year, I would assume illegally). All of that didn't change the fact that an imbalance of shares was identified in Nebraska court and was never resolved.
EIGH would be in the same situation where all of its securities trading on the OTC, which essentially are obligations (debt) that is illegal, would be required to be settled.
So is this another attempted hijacking or is this an entity protecting the shareholder's rights to what was perceived as real property when it was sold to them by their brokers?
Another example is the $MMTLP matter. Its was created via a special dividend as a private preffered security that was allowed to illegally trade. There is a pending corporate action in progress. Shareholders are stuck because of a FINRA U3 halt for "extraordinary events"
Seem like all 3 tickers CRGP, MMTLP, and EIGH are private securities by way of slight differences that should not be trading while the SEC, OTCM and FINRA do not know what to do because they got caught in their failures of governance in the financial system.
$EIGH
$CRGP
$MMTLP
