FormerXBC Inc XEBEQ

Shorts on US side

[Ciao]

Been trying to understand the disconnect between the fundamentals of the company and the share price (significantly improving fundamentals but a declining share price). Fundamentally the worse is over for the company, no reason for it to be trading at just above book value: a valuation given to companies that are not growing rev., financially stressed and are assigned this liquidation value. All the other cleantech stocks are trading at 3 plus times book, with much less rev growth or a business model that will take years before they become EBITDA positive.

We've been looking at the short interest on the CDN side (about 4.08M shares as of Dec 15), relative to daily trading volumes, less than 10 days to cover.  Not considered a lot. Over on the US side there are 3.8M shares shorted. Historically, a very high number of shares as it takes much much more than 10 days to cover.

With trading being dominant on the CDN side, someone could easily depress the share price with offers, ie. 50K in the $2.50 range to protect over 8M (US and CDN side) shares which need to be covered.

Once this stock moves (ie. overall cleantech rally or company specific news) I can see the shorts hitting the ask to cover. It'll be a domino effect creating a volatile move on the upside.

SHORT INTEREST

DATE	SHORT INTEREST	% CHANGE	AVG. DAILY SHARE VOL	DAYS TO COVER	SPLIT	NEW ISSUE
12/15/2021	3,823,925	9.70	122,529	31.21	No	No
11/30/2021	3,485,693	-10.51	70,125	49.71	No	No
11/15/2021	3,895,146	13.91	121,999	31.93	No	No
10/29/2021	3,419,635	7.71	48,612	70.35	No	No
10/15/2021	3,174,899	36.27	57,880	54.85	No	No
09/30/2021	2,329,844	-14.67	94,416	24.68	No	No
09/15/2021	2,730,282	-7.34	37,301	73.2	No	No
08/31/2021	2,946,520	2.53	36,533	80.65	No	No
08/13/2021	2,873,713	5.65	205,415	13.99	No	No
07/30/2021	2,719,936	4.68	13,139	207.01	No	No

Level 2 Quote Montage: MMID - OTC Link Inside Quote | MMID - OTC Link Quote | cMMID - Closed Quote | U - Unpriced Quote | MMIDu - Unsolicited Quote. All trade/quote prices in USD.

[Gann999]

what I don't understand about all this is by putting 50k on the ask side doesn't that in turn cost them even more and if it fails to bring the sp any lower and only serves to keep it at current levels what would be the benefit of incurring additional costs?

[Ciao]

Putting up a wall of shares encourages; 1) traders or weak hands to sell just below the wall of resistance 2) discourages shorters from covering their position until the wall is removed (shorters have no reason to cover in a flat or declining share price) There's no cost to the shorts until their asks are hit, and the stock continues to climb up. How many times have we've heard, the

[Ciao]

Putting up a wall of shares also discourages buyers who would rather buy in the absence of a wall of resistanc. They may buy after the wall is taken out (some will set stop limit buy orders above the resistance price).

[Gann999]

Thanks I better understand it now. Happy New Years