Winning Brands Corporation (WNBD)

[wadirum1]

TAKI,

With all due respect, you have no idea what I am "forgeting" (sic).

Shorting in advance of share issuance is indeed a time honored (albeit generally illegal) practice. I would not be surprised at all to find out that it happens.

If the buyer is buying 20mm 504s, they can short this number and then cover at very little risk with the 504 shares. In terms of the effect on the market, this isn't all that different from waiting to get the shares and then selling them. I'm sure you know this very well, unless you are forgetting it.

If the buyer is shorting even more than the number they are acquiring, then they are building up a short position over time. If this is large, then at some point they will need to cover, which will fuel a rise in PPS.

Wadi