Claritas Pharmaceuticals Inc CLAZF

RE:3rd day

[AngelaL]

I think you're correct. It's clear, at this point, that there will be a reverse split approved at the shareholder meeting in less than four weeks and that this will increase the share price to 60-80 cents. This will make it impossible for the share price to fall below the five cent cutoff necessitated by the TSXV to sell shares. Accordingly, the shorters will no longer have the ability to drive the company into bankruptcy by exploiting the five cent rule to prevent the company from selling equity to raise capital. Shorters must be aware of that and are now covering their positions and getting out. The true valuation of Claritas is probably around $80 million Canadian so we should expect in my view a doubling of the market valuation during the period running up to the shareholder meeting, followed by another doubling immediately thereafter.