Supreme Cannabis Company Inc. (The) T.FIRE

Big trade volume

[Daytrader1959]

Weird this stock trades big volumes each day but little change in stock price, usually a half of cent, so why such high trading volume?

[brentkostaa]

Borrow, short sell, cover, return shares, repeat over and over and over and over. I bet MMCAP is naked shorting the heck out of this making money on the short side and with the interest. Why else would they have taken on the risk of holding such a large position of a going concern? Its the only thing that makes sense to me.  Supreme only has to survive 2 years for MMCAP to become whole on

[theTransporter]

MMCap, since they are now considered an insider, must report all transactions.  I haven't seen anything from them on Canadian Insider so not too sure your theory of them trading this is accurate.  But thsoe guys probably know ways to hide their transactions.

[Method]

  They may not have to file on SEDI. Probably just on SEDAR within 10 business days of every month. 

[brentkostaa]

Ive never seen a naked short report. 

[Method]

so they are long 90m shares and are naked shorting? Are you saying they are short over 90m shares?

[brentkostaa]

why would they need to be net short? Why cant they maintain their long position, soak in interest payments twice a year, and then short sell daily?

[Method]

It's not shorting when long. It's just selling.  More likely they lend their shares out and collect extra interest from those who might actually be shorting like yourself or another fund against the debs.  There are lots of legal ways to make money without assuming they are breaking the law after the OSC is publicly paying more attention. 

[brentkostaa]

Naked shorting is a fairly common practice. Call it illegal if you want. Its not enforced. So its done. I can easily do it through Cannacord. If a poor little retail investor like me can do it, a hedge fund like MCMAP can do it, and im sure they do, all along their rat line.  Tell me Method. Why would MMCAP be so willing to restructure this debt? Just out of the goodness of their own heart

[Method]

Anyone can naked short but it doesn't make sense when you are long is what I'm saying. You still get charged for the borrow.  MMCap would restructure the debt because they think that's the way they could make the most money plus it's bad business for them to make an investee company file bankruptcy. It doesn't help with future sweetheart deals.  It's not

[brentkostaa]

oh i dont think its at all complicated. MMCAP has been financing the cananbis sector or years, playing both sides. There is ample evidence of that. 

[Method]

Exactly. I'm glad you could answer your own question as to why they agreed to refinance the debentures. 

[brentkostaa]

Review the exchange. Tell me what point you have made? 

[johnale]

Brent? Why would they borrow shares and short (with borrow cost) when they could essentially sell their own shares (no cost) and buy them back at a lower price if thats the trade they wanted to make?    brent... they have 90million shares of fire.  28.3million worth of debentures.  The only way MM is making money on fire right now - is if it goes up.  by my

[Method]

You asked why MM agreed to refinance the debentures. I said because they finance the sector and don't want to bankrupt a company. You said, MM has been financing the sector for years.   

[brentkostaa]

Method and John, https://financialpost.com/cannabis/how-a-handful-of-hedge-funds-cornered-cannabis-financing-and-made-a-killing-in-the-process So you are saying that this has not (and is not) happening? 

[Method]

I think it happened and I think it happened to Supreme but since then regulatory scrutiny has gone up significantly and the stock price is in the pennies. The economics for the strategy fall apart when the eequity is worth so little while the regulatory risk increases exponentially. There is a lot more money to be made from the interest on the debs alone.     

[Lou793]

Good volume already - stock running - no news - HMMJ down - maybe investors looking at smaller cap cannabis stocks that look to be righting their ship.