Depending on where the authorities source the outstanding number, the threshold requirement of (.005 x O/S) would be something on the order of 400,000 shares. That's a pretty big number given that daily volume itself hasn't exceeded 100,000 shares since 6/7. (Volume was notably higher from 6/4 thru 6/7.....I saw no non-tweeted news during that period.)
JBI first appeared on the list on 6/18......I believe that that means that fails first exceeded ~400,000 on 6/11. I believe that those are settlement dates, so the first trade date that included fails that pushed the magic number over 400,000 was 6/8, a day on which volume totaled 71,547 shares. http://ih.advfn.com/p.php?pid=historical&symbol=JBII
Would short trades be represented in that volume total just as any "regular" trades would be?
Related to an earlier post: I've heard reports that certain companies have failed to provide the needed documentation for the removal of a legend with some regularity. In fact this company was sued by a shareholder for such a failure, although I'm not sure whether the suit was successful. Per the 2010 10-K: "In September 2010, an investor filed a lawsuit against the Company for failure to timely remove restrictive legends from his shares in the Company. The outcome of this claim is not determinable at the time of issue of these consolidated financial statements and the costs, if any, will be charged to income in the period(s) in which they are reasonably determinable." There was no mention of the above suit in the subsequent 10-K. I'm guessing that the suit was based on a drop in the pps during the period in which the legends weren't removed, versus a suit to effect the removal of the legends, but I don't know. Anyway, as I understand it, such delays DO occur. Is it typical for a broker to allow the sale of such shares, given that they are aware that the required time period has expired to allow removal of the legend? Or do they typically wait for the proper documentation? Given that this causes a FTD and is presumably a FINRA violation (You are suggesting that this is legal...is it?: "In the case where a client is given the okay to sell prior to the brokerage receiving "clean certs") I would expect the latter, so I'm wondering if you have a sense of the frequency with which this might occur? Is this just a theoretically feasible explanation for JBI's presence on the threshold list, or is it really reasonable to think that a broker would essentially allow a target to be painted on their back this way?
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