OTCPK:CUUHF - Post by User
Post by
RetailRubeon Oct 26, 2018 5:41am
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Post# 28876088
Defence against debenture holders shorting common shares
Defence against debenture holders shorting common sharesThe company could file a complaint with the Provincial Securities Regulators under the section of the Securities Act on Market Manipulation.
In the Ontario Securities Act, this is found at 126.1: "A person or company shall not, directly or indirectly, engage or participate in any act, practice or course of conduct relating to securities, derivitaves or the underlying interest of a derivative that the person or company knows or reasonably ought to know, (a) results in or contributes to a misleading appearance of trading activity in, or an artificial price for, a security ..."
Penalties could be a fine up to $1 million per occurance, disgorgement of the gain, reversal of the trade, and payment of the cost of the proceedings. Expensive.
Disclosure: I am a retail investor. I own the common shares. I do not own the debentures. I have never been a lawyer. I have never been an investment professional.