Re: Centurion Private Equity LLC (Shorting Clause)
in response to
by
posted on
May 15, 2011 02:34PM
(Edit this Message from the "Fast Facts" Section)
bill,
All I can say is you need to do better DD.
From the SFMI 8K of 4/11:
"2.3.12 Limitation on Short Sales. The Investor [Centurion] and its affiliates shall not engage in short sales of the Company's Common Stock; provided, however, that the Investor may enter into any short exempt sale or any short sale or other hedging or similar arrangement it deems appropriate with respect to Put Shares after it receives a Put Notice with respect to such Put Shares so long as such sales or arrangements do not involve more than the number of such Put Shares specified in the Put Notice."
That's identical to the statement in Minerco's filing that you said SFMI didn't have in theirs.
And yes, you are correct. We are really tired of you bringing this up. Especially so after it was explained many times that that the LOC is designed so that Centurion has no incentive to short even without the above restriction. SFMI controls the timing and amounts of credit exercised. Centurion has no control over the timing, pricing, or amounts of any shares they receive, and do not get a discount of any significance- only 3%, which is less than the daily trading range. Without assured access to discounted shares, there is no incentive to short other than normal market forces. And I think that the above paragraph was even mentioned before, and you still wondered why Centurion's friends couldn't short. Once again- the LOC is designed so that there is no incentive to short. Period.