Yes that is so but until that takes place the shorting of shares can continue. When the spin off does happen and a call for all shares outstanding, who owns PCFG shares and how many shares are owned by each person then the short sell shares have to be covered that includes Naked shorted shares as well. Until that takes place short selling of shares will continue. This may not stop all the short selling however. Because once PCFG has the count needed to give out so many shares to each share holder at that time the shares are issued for Pacific Metals the short selling of both can comence. Seen it done to many times with other stocks.
All the spin off really does is force the shares that were naked short sold or the short sell to be covered so that a verification of O/S shares can be done against what is out there. Now if there are shares Naked short sold, meaning there were no shares borrowed to do these short sells (or air shares aka phantom shares) then that gives PCFG, the SEC and FINRA an idea of how many naked shorted shares were issued and by whom were these sold by.
I would not want to be the ones who naked shorted PCFG and can't come up with the physical shares once the actual Pacific Metals spin off takes place. The hope by the MM's and short sellers is that this stock tanks before the actual issueing of Pacific Metals shares starts to take place. If PCFG does not totally tank all shares that have been traded have to be accounted for one way or another.
Hope this helps.
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