Cartel Blue Inc (CRTL)

[rscomps]

Right, and this here is a startup (and just had a 504). Also, with more established companies, PPS affects the company's market cap, which, in turns, affects the credit available to it. Since, unfortunately, most companies today operate on credit, shorting does affect their operations. It also affects their potential customers' view of the company, and whether or not they want to deal with the company they perceive as being in trouble. As such, shorting can eventually drive a company into bankruptcy.

If RVGD secures financing independent of their stock, that'll be a great news for it, in my opinion. If it relies on selling its shares to raise working capital, as has been the case, shorting does affect it.