Mullen Automotive Inc (MULN)

[TenKay]

First of all, brokers can lend out stock from a margin account. Nothing illegal about that.

Second, in most cases restricted stock can’t be lent out because it is not liquid…and certainly not to cover a short already sold into the market as that is skirting Rule 144.

But in a case were the conditions exist for it to be lent out, it would be part of the brokerage agreement with the client.

But last and most importantly the process of lending out stock to deliver for a short position is completely normal. If it was lent out without the account owners permission or in violation off their account agreement that is broker and their customer…not MULN.

And there is no way to cover an open short position with more borrowed stock. That fairly complicated “loophole” was closed many years ago.

Yet another example of a claim that has no basis in reality. They are just throwing shit up there.