Pervasip Corp (PVSP)

[Bjones2]

Short selling figures resulting from DTC Chill

Also found out that the Short selling reports that show 40 to 50% short selling nearly everyday are being caused by the DTC Chill which is the electronic clearing house for stocks, and because of this chill, all the trades have to be made manually between buyers & sellers and in our case it is mostly market makers on one side of every trade, none directly from retail buy & seller. They are not really shorting the stock in the traditional sense it is more of a function of trading without electronic clearance of DTC, and of course the CD conversion.

"With Microcap stocks, this behavior typically involves the deposit of large blocks of unrestricted securities in reliance upon flawed legal opinions rendered in connection with convertible notes, reverse merger transactions or Rule 504 offerings."

So no doubt the convertible notes and the issuance of large increase in available shares caused the DTC chill, in my opinion.