InvestorsHub Logo
Followers 1
Posts 15
Boards Moderated 0
Alias Born 10/26/2022

Re: codie post# 80843

Friday, 07/21/2023 10:13:03 AM

Friday, July 21, 2023 10:13:03 AM

Post# of 80868
Codie, typically the DOJ's Fraud division is not required to publicly announce a criminal investigation. So there may be something lurking in the reeds that we do not know about.

To consider, when the DOJ does announce an investigation it often produces the intended result of causing skid marks on the undergarments of the announced target. For example, currently investigated short-seller Andrew Left of the infamous Citron Research, made national headlines this month when he publicly announced his cracking under pressure.

"Short Seller Andrew Left Is Living in Fear of the Feds"

Also, Codie, I strongly encourage you to go back and read through madcowelixir's posts, particularly the period from 2019-2021. He understands the plumbing of short-selling stocks, FTDs, using warrants as a locate to cover or close well before a broader population of people have become familiar with it since the 2021-ongoing saga kicked off by Gamestop. I suspect, like me, the work of Michael Lewis and his eye-opening book "Flash Boys" may be what kicked the doors open on understanding the intricacies of markets, including alternative trading systems. Or maybe he's from an institutional trading desk and now flies solo. Point is, go through those posts and see where Empery was likely coming from with the structuring of their notes, both the original Securities Purchase Agreement from Oct '21 and the amendments.

Make no mistake, Empery is a long-short opportunistic fund, and were likely using the warrants they asked for and received in the financing as locates as a way to assist in shorting the stock further. Don't forget, if a short-seller's target goes to zero, the short-seller never has to repay the borrowed stock because it's now worthless. They don't have to close, they don't have to even cover (what's to cover? The ticker is delisted and bankrupt!). Hey, they can even reap the gains without exposure of capital gains taxation, because they never disposed of the asset. That is the cruel fate when short-selling bets pay off. Except in this case, the target company was run by management that repeatedly ran afoul and received sanctions and fines from the SEC, and became more of a litigation company moonlighting as a supplement company.

Have you found the good guys yet? So far I see only villains and hapless shareholder casualties.

Here, to help connect the dots further: A link to some of the parties named in the DOJ short-selling probe.

Now look at the names of the holders of the Empery note: Anson Funds, Hudson Bay Capital, Intracostal Capital

Here's an example of the type of digging others are performing on, say, Anson Funds, one of the participants with Empery in the Securities Purchase Agreement (the "Notes" that ultimately sewered MSLP into bankruptcy.) This site's article on exploiting lax Euro regulations for direct market access, aka "the pipes" is showing an increasingly sophisticated understanding by retail on how some institutional players short-sell stocks.

After you read through all the links, it's worth asking yourself these questions:
--Was there ever a plan from the Note holders to support the business success of MSLP?
--Would a friendly investor charge interest that makes credit card rates look like cheap capital?
--Or perhaps they met their match in Drexler, and that this is a tale in which there are no good guys, just multiple parties looking to short the company into oblivion, but it backfired so now the biggest parties are litigating and grab what they can from this carcass of a company?

Also, if you are interested you can order transcripts and read the rulings and conferences set by Hon. Natalie Cox, the Nevada bankruptcy judge presiding over this case. She shot down Empery's pleading to enforce the Intercreditor and Subordination Agreement, and the deadlines for the second attempt at an auction keep getting pushed back, and parties that were interested in December are pulling out of any second auction. As I referenced in my prior post - against all odds, really - when you strip out the restructuring costs, somehow, this company is profitable, albeit dependent on debtor-in-possession funding for liquidity. But there is so much animosity, destruction of goodwill in that monsoon of litigation, lack of liquidity, narrowing of channels to sell into, that it's hard for me to put a value for this company above zero.

You work hard for your money, why not invest it in supporting a company that deserves your capital?