Replies to post #19639 on Shot Spirits Corporation (fka SSPT)

[fb481777]

thank you for the link Swat, but, what does this mean for SSPT? I still don't get it (apologies for the ignorance). Does this mean that SSPT needs to bring the value PPS of SSPT back up or it will be shut down? Meaning, the current PPS is really below (Short) the actually HIGH PPS value of SSPT?

[Cassandra]

Unfortunately, SSPT is NOT subject to mandatory close-out requirements under NASD Rule 3210. In other words, this means that presummed short positions even though meeting the SHO threshold (the "naked short list'), have NO madatory time to close out such a position.

This is important because it is contrary to what is being presummed on this forum. Explanation:

See the Threshold Security List here and notice that it has an "N" in the box regarding "Rule 3210 Flag."

The explanation of what that "N" means is on this web page (see quote below):

Subject to the requirements of NASD Rule 3210
Where, for five consecutive settlement days, there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more and the reported last sale during normal market hours would value the aggregate fail to deliver position at $50,000 or more.

When this occurs, the security becomes subject to mandatory close-out requirements outlined in NASD Rule 3210.

The allowed values are:

•Y = Yes, if the issue is subject to mandatory close-out requirements of Rule 3210.
•N = No, if the issue is NOT subject to mandatory close-out requirements of Rule 3210.

Therefore, there is no mandatory close-out requirement for SSPT stock even if it failures to deliver hit the threshold.

Beware of this if considering buying SSPT because of an assumed short squeeze due to failures to deliver.

FWIW, I posted the quote exactly as on the NASDAQ website and was not the one to NOT in all caps regarding the "N" -- they did.