Plan to defeat naked short selling!
$NRX Pharmaceuticals(NRXP.US$ RADNOR, Pa., March 12, 2024 /PRNewswire/ -- NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals", the "Company") today initiated actions to combat short sellers in the Company's stock.
The Company announced a proposal to simultaneously change the CUSIP under which the Company's shares are traded, together with changing the name of the Company to NRx Therapeutics, Inc. The Company plans to accompany these actions with a required exchange of the underlying stock certificates. This certificate change is expected to be seamless for those investors holding NRXP shares in electronic form and similarly for investors who may have established short positions in NRXP by borrowing the underlying shares from a registered shareholder. Any party holding a short position in the Company's shares who has not complied with the legal requirement to borrow the underlying shares of stock (i.e. "a naked short") may be unable to exchange that position for a position in the new security.
The Company is working with attorneys who formerly served in leadership positions at the SEC Division of Enforcement to correspond with corporate counsel and compliance heads at leading brokerages to emphasize the current legal prohibitions against naked short sales. As identified in previous announcements, the Company was advised by ShareIntel in September 2023 that substantial naked short positions in the Company's securities had been identified at major brokerage firms.
"We believe it is in the best interests of our shareholders to have fully-compliant trading in the markets," said Janet Rehnquist, Esq., who chairs the Company's Compliance Committee. "As we focus on the development of potentially life-saving drugs to combat suicidal depression, PTSD, and Chronic Pain, it is critical that we take all steps possible to maximize the value of those who have invested in our Company and provided the resources to address these critical unmet medical needs."
The Company announced a proposal to simultaneously change the CUSIP under which the Company's shares are traded, together with changing the name of the Company to NRx Therapeutics, Inc. The Company plans to accompany these actions with a required exchange of the underlying stock certificates. This certificate change is expected to be seamless for those investors holding NRXP shares in electronic form and similarly for investors who may have established short positions in NRXP by borrowing the underlying shares from a registered shareholder. Any party holding a short position in the Company's shares who has not complied with the legal requirement to borrow the underlying shares of stock (i.e. "a naked short") may be unable to exchange that position for a position in the new security.
The Company is working with attorneys who formerly served in leadership positions at the SEC Division of Enforcement to correspond with corporate counsel and compliance heads at leading brokerages to emphasize the current legal prohibitions against naked short sales. As identified in previous announcements, the Company was advised by ShareIntel in September 2023 that substantial naked short positions in the Company's securities had been identified at major brokerage firms.
"We believe it is in the best interests of our shareholders to have fully-compliant trading in the markets," said Janet Rehnquist, Esq., who chairs the Company's Compliance Committee. "As we focus on the development of potentially life-saving drugs to combat suicidal depression, PTSD, and Chronic Pain, it is critical that we take all steps possible to maximize the value of those who have invested in our Company and provided the resources to address these critical unmet medical needs."
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Seraphicall : Woah
xxxjaystation : Hopefully this proposal is just some mind game there to shake short sellers and not for an actual rs.
TrytosaveabitOP xxxjaystation: I believe the R/S will happen! Higher price will cut down on manipulation!
xxxjaystation TrytosaveabitOP: Do you think itll actually be beneficial this time around?
TrytosaveabitOP xxxjaystation: I hope. But will have to see how it plays out!
Malt shake : Saw this with scenario with $Cosmos Health (COSM.US)$ …. didn’t turn out too well
TrytosaveabitOP Malt shake: True! Sometimes it don’t work how they plan! Hope this will be different? GL
DannyKwan : Will it be 1:10 or 1:50
JESSE JAMES8832 : nice about time someone takes notice
TrytosaveabitOP JESSE JAMES8832: So true! GM brother GL today!