You are right LG the only way to not cover is to cancel the shares. And split or swap would require a count of shares and the share holders of record.
The best way to describe it is that the TA will have to have all the paper shares. A NSS does not have a paper share to represent his holdings so he has to buy a paper share from someone who has one. If the people with the paper shares dont want to part with one for less then $500 they will have to pay for it. The question is what is everyone's trigger price? If you are willing to hold for $500 but I have a price of 100 you may not get your price.
The people here saying they will bail out at .50 is what the shorts are counting on. They are the people we have to hope understand a short squeeze. As long as the shares are in the hands of the informed the PPS will have no top that can be estimated. I think reasonably a $30-50 is not out of the realm of possibility. It could go higher but people with 10k shares @ .06 will not be able to hold back when their $600 becomes $100K. It is hard to look at that kind of profit and not sell.
I would guess most shorts here are under $1 As soon as we cross that line we will skyrocket
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