SiNtx Technologies Inc (SINT)

[boston745]

This is essentially how the Anson family of funds (is Anson at the top of this family?) work SINT and its offerings.

Here is a trade that is almost guaranteed to make money, though it is also double super illegal.

These companies -- there were 13 of them, all pretty small -- raised money through what the SEC calls "confidentially marketed public offerings." A company would engage an investment bank, which would call up potential investors and ask if they wanted to buy shares in the company. The bank would do this before the company publicly announced the offering, and would "wall-cross" the potential investors, making them agree to keep the information about the offering secret until it was announced publicly.

So here's a predictable stock-market pattern and an easy way to exploit it: If a company calls you up to ask you to invest in its upcoming public offering, you should (1) say yes, (2) sell the company's stock short before the public announcement, and then (3) buy the stock back in the public offering, generally at a 10+ percent discount, a few days later.

This is of course not legal advice! It is a great trade, but it is also double super illegal, insofar as:

There is a specific SEC rule against short selling stock just before a public offering and then buying back the stock in the offering, 5 and
There is a general, and much more important, rule against trading on purloined material nonpublic information, and this is that.

trading in breach of that agreement, you are clearly violating not just the contract, but also insider trading laws, which make it illegal to trade "in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security."

But, you know, who will check?

Some of the funds would get wall-crossed, and then they'd tip each other and trade in the other funds to try to obscure what was going on:

When they were successful in obtaining such information, Fishoff shorted the issuer’s stock in advance of the offerings, directed trading by Chernin and Costantin in those instances when he did not place the trades on his own, and tipped Petrello, who then also shorted the stock through Brielle and Oceanview.

In many instances, the Fishoff-controlled entities for which Chernin and Costantin were fronting also participated in the offering, with the stock going to Featherwood’s account and often being used to cover the short sales.

This right here is most likely how this family of funds worked. 1+ of them would get information of a forthcoming offering which it would later participate in, and tip the others off so they can pre-short. Not sure why the author says pre-short, wouldnt this be naked shorting? They then used the shares from the offering that Fund #1 received to cover those naked short positions?

By cheating on their wall-cross agreements and shorting the stock, these guys had the effect of driving down the stock price, which probably reduced the price in the offering. These companies probably got less money for their stock because their nonpublic information was (allegedly) used against them.

Though you could have a more cynical view of this sort of thing. A company needs to sell stock, but worries that announcing a public offering will drive down its stock price and not produce any takers. So it calls some investors up privately and tells them it's doing a deal. Those investors agree to invest in the deal, but before the deal is announced they lay off their risk by shorting the company's stock. Then the deal is announced and the investors buy shares from the company to (illegally) cover their shorts. The investors get their 10 percent, or whatever, discount to the market price as a commission; their real function is not to invest in the deal but to intermediate between the company (which can't sell stock without a publicly disclosed offering) and the unsuspecting public (which buys from the "investors" before the public disclosure). The wall-cross agreement creates deniability for the company. No one's stealing from the company; they're helping the company get a deal done that would otherwise be much harder to achieve. The victims are the public who buy from the insider traders at the inflated, pre-announcement price.

There is definitely evidence supporting this, especially between 2022 RS & 2024 RS. For instance, Lind Group participated in the offering, these funds naked shorted from as high as .50s before Lind used their shares to cover those shorts at .15. Thus this group of funds "laid off their risk", making millions in a few days, and did in fact work as an intermediary between the company and the public as they dumped shares. Lind Group sold off its shares in a matter of days. This group of investors gets a hell of alot more than 10% off these offerings. After factoring in the 200:1 split theyve been shorting since 100 with a hell of a pump and dump between .04 to .22 pre-split (8-44 post split).

You short 16 million, knowing once the offering price is announced, the stock will take a hit. Voila, in 24 to 48 hours you just made 1.6 million by buying back at .15 +

Fund A would be the one that bought the offering, in this case Lind Group. Funds B, etc.. (theres like 9 funds identified so far) would be the ones naked shorting like described here by Joev2. For which i replied:

Its the hfunds that made the $1.6m you describe. Also they NAKED shorted on news of the R&D contract with the army, thus they NAKED shorted from .25-.50 range making alot more than the $1.6m you mentioned. If every .1 represents $1.6m profit then if they have an average Naked short position of .35 then that translates to $3.2m in 24 to 48 hours. Essentially funding the offering in 1-2 day period.

They announced the news on Jan 30th when these funds pre-naked shorted the offering and the offering closed on Feb 2nd. This is exactly the scenario depicted in the above and its accomplished by trading inside information and using multiple hedge funds to bypass the sec rule that prevents funds from shorting before an offering they participate in. Then these funds can wash trade the stock price lower trading back and forth between each other, to make even more money shorting the stock. You can see how many naked shares that remained uncovered by the 2nd of Feb.
20240202|829392604|SINT|5,939,951|SINTX TECHNOLOGIES INC COM COM|0.15

Something posted by XenaLives years ago and it seems to correlate with all this, especially post split as theyve been walking the price down.

The 10000 can be wash traded back and forth freely between colluding computers. Tons of money is made so they can now walk the stock down even lower because risk has been reduced.

Instead of thinking of this as simply colluding computers, think of it as Fund A & Fund B colluding to trade back n forth to walk the price down. Anson and the other funds in the family are well known for this sort of behavior and they couldnt have been more obvious about it after the Feb 2023 offering.

Quote Sources:
https://web.archive.org/web/2019033...aders-made-some-easy-money-on-stock-offerings
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173751723
https://investorshub.advfn.com/boards/replies.aspx?msg=173751723
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139777542