IHUBfan (& All), with a covering twist...
Not so. Those shares can be retired either back to the Treasury or retired to where they cease to exist. It's only a matter of choice.
There is a chance that what he is doing is fixing the share structure "officially" right before the public's eye to eliminate any questions on what he has to deliver. It must be something of a huge magnitude if I had to guess.
There are many reasons why the share structure could be screwed up "number-wise" within a few places between regulatory authorities. This could be his way of "officially" getting everyone back on the same page.
Maybe there is a disparity in numbers as to what is the OS between the SEC, the Transfer Agent, the NASD, the Nevada SOS, the DTC, and the company. To get all of these key entities back on track, he realized that it would probably be too much of a issue to reverse split CBAY because if one entity reflects the OS for being 4 billion shares and another reflects the OS for being 41,235,548 shares, then such could create a major issue with the SEC from coordination with the NASD folks. I think they filed that the OS was 41,235,548 shares with the SEC knowing such was the last number the SEC had on file to prove that there is a disparity in numbers between the SEC and other regulatory authorities in need of being resolved.
After shown to the SEC, the SEC probably granted them what and how the company requested to fix the disparity to help the SEC save face for them both from not having the correct number. CBAY has tasked themselves with creating the right number. After they complete their buying back of shares, they will then file the new OS with the SEC and all other regulatory authorities to bring everyone back in unison.
This is how it appears that the company has decided to seriously take matters into their own hands to rectify the issue by attacking from a worse case scenario stance. Clearly the SEC is aware of this and agrees to have allowed them to fix what they as a company had broke, even if it was due to the old management.
It appears they are aggressively buying back shares to capture some certain amount of shares under the Authorized Shares (AS) umbrella to what will be the new OS created from scratch. It's kind of like pick a number and wherever they decide to stop and file for the final OS, will be coordinated with all regulatory authorities this time because they would have generated the proof through the Form 4s supporting and reflecting the newly captured "legitimate" shares.
The madness will come from when they file a newly created share structure revealing from remaining "illegitimate" shares or naked short shares or Failure to Delivers (FTDs) showing up on the DTC logs that are above the legitimate share structure "officially" created, especially those shares sitting in retail investors' accounts (us).
This is when the covering should begin. This is what I think many will be waiting for and why some have decided to take the risk.
The good thing with all of this is that apprently the company must have something huge to announce or they just would not be going through all of this for nothing. Heck, the CEO could have spent this $330,000 on something else I'm sure.
The other good thing is that with probably having something huge to announce, let's assume that there is no naked short in CBAY. Then with this very aggressive buying back of the shares to include the volume from retail investors buying CBAY too, then the inventory of shares will probably be either close to zero or right at zero.
Even with a zero inventory of shares, the price should react as if there was a naked short as volume enters due to news of substance. Bottomm line, the market will be more likely to trade CBAY fairly versus how it might have been previously traded.
From the very aggressive nature that the company/CEO is buying back shares, I would have to guess that all debt and liabilities issues have been resolved and that they have serious news that they want to release very soon. This is from the “actions” they are allowing to speak louder than any “words” I have ever heard within the market. Because of this, I think the time is now with CBAY. IMHO
v/r
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