Plastic2Oil Inc (PTOI)

[BigBake1]

Well this is all wrong, first the company has disclosed publicly the issuance of restricted shares, those shares are in fact eligible for conversion at this exact period of time. I mean if it were not in a filing you might be right, but there it is in black and white. Rejected trades cause FTDs, they sit until one of two things happen, the company and TA resolve the conversion issue or the entity that sold them has to buy shares in 35 days to cover the failed trades.

Daily Reg SHO is useless data, it is only a snapshot of the initial leg of a trading transaction, the only entity it is used by is FINRA for tracking settlement rates from inception of a trade. It means nothing to retail here especially in OTC land, the illiquid marketplace where it is common to see 100% short volume because of meager to non existant volume in the majority of securities traded here.

Further due to exact issue here, risk exposure requires trades that use newly issued shares to be "marked" short for this exact reason of trade rejection, this is thoroughly discussed in SEC Rule 200 and 203 respectively.

Pursuant to the suggestions of other commenters, we are including an additional exception from the uniform locate requirement of Rule 203(b)(1) for situations where a broker-dealer effects a sale on behalf of a customer that is deemed to own the security pursuant to Rule 200, although, through no fault of the customer or the broker-dealer, it is not reasonably expected that the security will be in the physical possession or control of the broker-dealer by settlement date, and is thus a "short" sale under the marking requirements of Rule 200(g) as adopted.70 Such circumstances could include the situation where a convertible security, option, or warrant has been tendered for conversion or exchange, but the underlying security is not reasonably expected to be received by settlement date. 71 Rule 203(b)(2)(ii) as adopted provides that in all situations, delivery should be made on the sale as soon as all restrictions on delivery have been removed, and in any event no later than 35 days after trade date, at which time the broker-dealer that sold on behalf of the person must either borrow securities or close out the open position by purchasing securities of like kind and quantity.