Reconnaissance Energy (Africa) Ltd V.RECO

Short interest telling a story

[Oregonduck]

Why are the latest shorts still so high and remained unchanged after the stock had plummeted? Rationale would have it that the shorts should have dropped a lot with people taking profits.

Shorts in the US and Canada are 5.3 million and 1.4 million respectively as of Nov 15th. It is not known or disclosed who shorted the stock.
 

It is illegal for insiders to short their own stock that they don't own or buy puts & calls. However, they are allowed to short shares that they owned - the so-called "Shorting against the Box" - or against warrants and options. To sell short, they would need to open a margin account.

It is highly plausible that insiders have shorted millions of shares but not yet closed out their position.There lies the high short interest. They don't want to spook the market that they had dumped their shares. We know in 2021, many have sold including 5.5 million shares by Craig Steinke.

[Yo_Dog]

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. 

[Oregonduck]

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

[CoreyB]

You keep saying that insiders have sold millions of shares, yet there is zero record of any insider sales, and you have not provided any proof of such to date.  If it sounds like a f@ck, looks like a f@ck, smells like a sh!tty f@ck, then it must be the poser poster known as OregonF@ck.