Replies to post #15877 on VirTra Inc (VTSI)

[dlewisfl]

gemmerling: Although Dutchess (or their business agents), may not have a short position, there's nothing that prevents, say, a friend of a high-ranking employee of Dutchess from shorting the stock. Cornell is allegedly famous for such arrangements (naked shorts that can't be traced back to them), always seems to be there's a naked short position in a company Cornell finances. I don't think that's co-incidental.

I know there's a lot of "conspiracy" theories out their re: the MMs and financing companies messing with the PPS. I wouldn't put it past someone who would benefit from naked shorting to do it through some loophole. It seems to happen a lot.

[Paul P]

<<<The financiers cannot naked short the stock.>>>

Says who?

From your own post: the selling shareholders are not permitted to cover short sales by purchasing shares while the distribution is taking place. Dutchess II can cover any short positions only with shares received from us under the equity line.

That says nothing about naked shorting, only about covering short positions. Am I missing something?

The likely scenario seems to me to be 1)VirTra notifies Dutchess of a draw down on the equity line. Dutchess shorts the appropriate number of shares. They receive the funds from settlement and use them to pay VirTra.

If that's the way it works, what a sweet, sweet deal. They would never even have to use their own money.