Supreme Cannabis Company Inc. (The) T.FIRE

Silver lining

[johnale]

After December 15 - there is a 60 day blackout period where MM can't sell - runing into feb 15 earnings. 

We can run pretty hard in that time as the atm drops or shut off entirely, and MM is shut down too.

with the chart in a positive direction, might be ok. With a great q2 - may help drive us forward and beyond - negating any pressure from MM.

[Method]

Did IR tell you MM would be subject to the black out period?

[johnale]

Why wouldn't they be? Owning more than 10% they are considered insiders with reporting requirements?  Maybe I'm wrong - I'll find out.  Either way - what do you think about MM selling?   

[Method]

  They file on SEDAR because they aren't true insiders. It's just an investment. If they filed on SEDI, they would likely be subject to the blackout. I'm disappointed they are selling but not too surprised. It could be because they are too concentrated. It could be because they were helping another fund build a position. It could be because they see a better opportunity

[vulcan123456789]

i would agree method..likely trading it for gain.. drive it down buy.. drivenit up sell rinse and repeat until relevant news moves it on its own

[Greenman519]

maybe they sold just enough to bring them back below the 1/3 ownership that makes them be considered insiders. The report on Sedar was from about 1 month ago..

[johnale]

Ya lots of possible reasons, we'll never know.  ON second look -  they probably aren't subject to insider blackouts, as they sold November 11 and earnings were released nov 16.  there has been a ton of volume lately, and maybe they took the opportunity to trade, take some off the table, and maybe get another fund involved. tax loss selling has some financial implications

[brentkostaa]

Still think MMCAP isnt shorting? Seems likey they are derisking and liquidating their equity as they make from the short side.  In my opinion they are shorting this and offsetting their equity losses. THis is a win for them as they liquidate at break even, leaving the coupon as their cash cow. Eventually MM will own zero equity, and only debs and have their original investment totally

[johnale]

what your saying doesn't make sense to me.  shorting requires borrowing shares - which has a cost involved. They can just sell their own shares.  to short at 20 - (for instance) - and cover using shares they own at ACB of .41 for instance - they would register a loss.  If they sell at 20c and buy back at 17 - then sure. But it doesn't look like that happened. It just

[Method]

I don't understand how shorting gets into the conversation either.  They sold some.

[brentkostaa]

Why would there be a cost to borrow when they have their own inventory. To me they are selling their own shares, walking the share price down (bullish retail cant compete with the ATM and the bombardment of institutional selling)... and then covering to go long, only to sell again from their net position in the high teens.  Long story short, they are NOT waiting for their 40 cent break even

[Method]

What you are describing is trading around their position, not shorting.  Sure they can do it. They just have to file once a month.

[brentkostaa]

If I have millions of shares in my inventory. Can I not naked short a stock much easier? So long as I cover within 3 or 4 days, back office or the TA would have no clue and thus, it wont need to be filed.  Do you think MM is wh0ring out their inventory to predatorial shorts? I do. I bet the money they make on the borrow goes toward their bottom line on their "investment" into

[Method]

You can't go net short when long. It does make sense for them to lend shares out to shorts, collect interest and then pull the borrow and sell shares to the shorts as they scramble to cover. That would at least be legal and be helpful to their position since they are very very long. 

[brentkostaa]

As long as we can agree that MM does NOT intend on making money on the long side... at all. Selling 3% of their position far below breakeven tells me what I already knew. It should probably tell you the same. That they will dump their entire positiion far below the 40cent threshold that you and John seem to dispute.  How they are doing it doesnt really concern me. MMCAP is extremely

[Method]

What 40 cent threshold are you going on about? I don't think I have ever written about that.

[brentkostaa]

Apologies, perhaps it was john and not you that stated MMCAPs break even of 0.40. My bad. 

[johnale]

Well it's just semantics - they aren't "covering" - they are just buying back.  but I see no evidence of that. They sold nov 11 at .135/.14  - don't see how they made money there.  it's possible on the run up they sold no shares at all.  bottom line - I agree they will try to make money however they can (we all do).  Suprised they moved