RE:RE:Short interest telling a storyYo_Dog wrote: Mr Duck
If insiders are selling and not disclosing, it is illegal. IMO, I really doubt your acquisition.
However, the large short position does put a floor on the stock as at some point the shorts have to cover. Hopefully, we'll see a partner, but I suspect the short position will stay in place until the next well is drilled and rumours start flying.
For CRA or IRS, "Shorting the Box" or shorting your own shares is, in effect, considered a "constructive sale" and capital gains are due.
However, insiders do not have to file Insiders Report until they close out their shorts by delivering the shares to their brokers. Investors are in the dark until then.
Without citing SEC and Canada Business Corporations Act here, the rules are validly subsisting in their reg.
It is only illegal if they shorted their own shares on adverse inside information not disseminated to the public.