Nick is the one that said this, not me:
As you all know, the company was in peril in 2008 and entered into toxic financing with a hedge fund called NIR group. NIR is notorious for toxic financing and for issuing ridiculous amounts of shares in their target company, having those shares spread out among several of their entities. Some of these entities are off-shores corporations making tracking share ownership difficult at times. From 2008 to 2010 literally billions of shares were issued electronically and this is what caused the initial “Chill” by the DTC to be placed on the company securities. During this period the company also switched TA’s, and did a reverse split all of which could easily cause a discrepancy in
share amount.
It is therefore one theory that perhaps the outstanding shares are in fact larger than originally thought, and as these long-term holders realize that they have shares now worth something, they place them for sale with a full service broker such as the one that has been plaguing our securities. This would explain the selling that does not add up with our notions of the current float, the sporadic appearance of certain market makers. As you may know we are in the process of a DTCC review of our current chill order and an answer may come any day now. It may also take weeks. We just do not know. I would guess sooner rather than later, and once we get notification on the chill’s removal we will announce it. I will also immediately request a full DTCC transaction history report so we can trace back ownership and sale transactions going back several years to get to the bottom of the question of uncounted shares once and for all. This could show several hundred million shares unaccounted for, or a few million. It may also show nothing, which would lead us to investigate further.
