RE:OSC and IIROC appeal for tips on abusive trading The practices of short selling in the Canadian mj space have run rampant over the last 3 years. The OSC and IIROC are going to need all the help they can get if they're going any chance of getting a handle on it. There's no lack of anecdotal evidence out there there and I'm sure they'll be swamped with submissions. It's the hard evidence that they need now. They've heard the stories now they need to build cases.
For example: EMH.v was clearly systematically shorted over a six month period begininning roughly October 2019 through the end of March 2020 and in the beginning of April 2020, Warrants attached to financing from an Institutional Investor that stepped in in August 2019 were repriced at a heavy discount. The price on those warrants dropped from $2.00 to $0.17.
The manipulation of EMH.v is blatantly obvious for me.
The benefits to the Investor are obvious. When EMH.v completes the sales of Verdlite and PSF to the respective parties they will most likely clear the debt with the investor. The Investor won't be out of the picture though. No siree. The will be sitting on 6MM Warrants exercisable at $0.21. After such exercise the Investor will be holding close to 25MM shares of EMH.v. That's roughly 12% of a company which should be sitting with a $70MM cash position along with fully paid for, operational and profitable mj LP's with multiple high margin products and established distribution.
Actual price to the Investor - about $4MM for 12% of $70MM +++ and NO DEBT!!
Certainly a lucrative arrangement for Investor. Meanwhile as with many other heavily shorted mj stocks the average shareholder has seen the share price shrink 90% from $2.00 to less than $0.20
The impact on shareholders is that EMH.v is currently trading at share price representative of less than half of it's book value. The stock is under promoted, under bought, under value and under priced.
Is all of this is anecdotal? Seems pretty real to me. If you have any information and/or believe the OSC should conduct an investigation on any company it starts by filing a report.
https://www.osc.gov.on.ca/en/whistleblower.htm
At it's current price EMH.v is one heck of a bargain and remains a potential takeover target in my minds eye.
cheers