Replies to post #63686 on CBA Florida Inc. (fka CBAI)

[hmmauto]

according to the filing yes...although they can sell to brokers, dealers etc that can...and will..i can post the info from the filing if you want...good luck, michael
well here you go from page 11
There are certain risks related to sales by Tangiers, including:

· The outstanding shares will be issued based on a discount to the market rate. As a result, the lower the stock price is around the time Tangiers is issued shares, the greater chance that Tangiers gets more shares. This could result in substantial dilution to the interests of other holders of common stock.


· To the extent Tangiers sells our common stock, our common stock price may decrease due to the additional shares in the market. This could allow Tangiers to sell greater amounts of common stock, the sales of which would further depress the stock price.


· The significant downward pressure on the price of our common stock as Tangiers sells material amounts of our common stock could encourage short sales by Tangiers or others. This could place further downward pressure on the price of our common stock.

[MinnieM]

Yes, it is legal, and entities like them are usually the only ones that can foot the cost of shorting something in this price range. The average retail investor is unable to. The holding costs are too high.

My Fidelity account won't allow me to short it, but, my IB account allows me to short pennies. I don't because last time I checked, I had to have something insane like 2.50 per share tied up to do so.

Only very cash flush entities can short something like this.




In Reply to 'Agent92260'
Do you know if it's legal for Tangiers to short this stock?

[glockss2000]

for what it is worth, lenders short the stock to hedge against drop in credit rating of a company. If the credit rating drops the bonds would lose value to reflect a higher interest rate, so shorting a stock would help offset in the drop of the bond value

[up-down]

The S-1 registering free trading shares for Tangiers to dump on retail shareholders says yes.

see #msg-64440176