Replies to post #109707 on Sarissa Resources Inc (SRSR)

[downsideup]

Yeah, but...

That assumes that the transactions you are talking about... are all going to be taking place under the roof of and by the agency of the DTCC...

If the distribution is made in Hong Kong... or in Toronto... that simply won't be true.

[dmbao]

The problem comes from what if the shares I hold in my brokerage account are longs from another naked shorts on the other side. So it there are more longs than the AS. After the recent DC and vote the company should have a pretty good idea of the short position if 1.4 billion votes where cast?

[easymillion]

mtcotc-Adding This Addendum to my Previous Reply

it's the ST (dividend-in kind) shares that will force the shorts to cover. Those with borrowed shares will not receive the dividend and be forced to cover.

Considering Scott's intention to make Shining Tree spin-out NI 43-101, yes a forced cover would ensue. In my previous post I was basically considering only SRSR shareholders, not the MMs themselves who would be putting "electronic counterfeit" borrowed shares into shareholders accounts. No problem for the MMs if the spin-out has little or no value. However, You correctly assessed that it appears Scott is moving rapidly to avoid this scenario by making Shining Tree a reporting NI 43-101 company a priority. The underlying value of Shining Tree would make it highly unprofitable for any MMs to maintain "borrowed" shares created for the spin-out, which would also be short until reconciled and covered.

Sarissa expects that it will accomplish this spin-out by declaring a dividend-in-kind of all the shares of Shining Tree to the shareholders of Sarissa. The spin-out is being implemented as a first step in the Company's continued efforts to enhance shareholder value, which Sarissa is confident can be best accomplished by creating a separate Ontario focused exploration company. Management of Sarissa hopes that Shining Tree would become a Canadian reporting issuer at the time of, or as soon as possible following, the spin-out. The Shining Tree Property consists of 7 contiguous claim groups, approximately 1200 acres, in the Shining Tree gold area of Northern Ontario. In connection with the spin-out a NI 43-101 independent report is currently being prepared on the Shining Tree Property.

I'm beginning to like Scott's plan more and more each day!
Easy