Replies to post #69578 on Mullen Automotive Inc (MULN)

[Dingbatt]

By doing a reverse split on a short you have given it a new identity and fabricated just as many shares that were loaned out in the fist place if the broker loaned it out more than one which they do they fabricated that many more shares in the reverse split

[TenKay]

“How to hell can you do a reverse split on a short the short needs to be fully closed out before any reverse split because it has been loaned out the short should not be allowed to reverse because it does not exist reversing both is a double reverse“

LOL…the idea that a short position has to be covered because of a RS is a myth…particularly prevalent on the OTC. A short position survives an RS and simply is reduced by the RS ratio. For example in the case of Mullen a short position of 1000 shares prior to the RS simply becomes a short position of 10 shares after the RS

[I-Glow]

Mullen was $0.08 - there weren't any open short positions - they has been closed mostly after the first reverse split 1:25 - shorts made a killing but they didn't short until after the reverse split.

All outstanding Common shares are split.

Open short positions don't need to be closed before a reverse split.

IG