It is known as “Cellar Boxing”, a form of securities fraud known as "naked short selling" that is becoming very popular and lucrative to the market makers that practice it.
0.0001 is appropriately referred to as “the cellar”. This 0.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations.
When the market is > no bid to 0.0001 offer < there is theoretically an infinite spread.
> Sometimes the shareholder base can muster up enough buying pressure
> Another option would be to organize a "sustained buying effort", and muscle your way out of "the cellar",
> The goal of the "victim company" now becomes to avoid the 3 main goals of the naked short sellers, namely:
> bankruptcy, > a reverse split, > or the forced signing of a death spiral convertible debenture out of desperation.
As long as the "victim company" can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes:
> name changes, > CUSIP # changes, > cancel/reissue procedures, > dividend distributions, > amending of by-laws and Articles of Corporation, etc.
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