Destiny Media Tech Inc (DSNY)

[Justfactsmam]

Why short will not have to cover under RS

What if investors vote for the RS on February 25th and the Naked short fails to buy back shares?

You ask "How can they not buy back shares?...they have to cover!" The answer is THEY DONT have to cover if they have been shorting on Toronto exchange.

If the "Naked Short" shorted the Canadian (Toronto Stock Exchange) stock, it is that stock that would have to be covered...not the U.S. BB stock or stock on the Nasdaq. Assuming that they are short with their Broker/Dealer shares on the Toronto exchange. The "Trigger" for the short to cover is the "call" for shares to be exchanged. Toronto shares will not be called in, therefore the naked short shares sold remains out there via the Toronto stock.

The stock traded on the Toronto Exchange is totally unaffected by the up-listing on U.S exchanges (except for any impact on SP and currency adjustment).

Only positive for RS is nasdaq up-listing to pull in "funds" (according to management) are waiting in the wings. Funds will require evidence of revenue via adoption...dont see that traction until May/June...

The only positive result of the RS is Nasdaq up-listing so that "funds" (who according to management) are waiting in the wings. But IMHO that will not occur until company gains revenue traction...now expected in May/June for reporting purposes.

IMHO...DSNY will RS, up-list and no squeeze will occur.

The only way DSNY can get the Canadian Naked Short to cover is to de-list from the Toronto exchange and force an accounting of shares and as well as an exchange of the Toronto stock certificates for U.S. Nasdaq shares (or BB if it remains on BB).

The entire exercise appears to be a "Non-Event". In fact...the naked short might accelerate because of the higher price after the RS would make it more ripe for shorting on the Toronto Exchange.