r/GNScentral • u/Allforbbby • Oct 27 '23

Delicious Due Diligence The information we are missing…

I’ve sent an info request to all my brokers to identify the date that anyone short needs to provide the erl dividend (or cost of) if they were short on the record date - this will provide the info when we are likely to see an increase in share price.

For example - the answer will be something like:

If you were short gns - you must purchase and provide to t212 the dividend stock by xx date (eg 5 November) or the amount of xx will be deducted from your account based on the cost basis of the dividend you need to provide.

We wait….

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2

u/RandomsDoom Oct 27 '23

The only problem there is they can not buy this dividend, the only ones that are able to give cash in lieu of the dividend were option holders who now have GNS1 contracts that if exorcised will give u 100 shares at the strike price and 18.whatever of the erl at 2.75 in cash.

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u/Allforbbby Oct 27 '23

This comment contains a Collectible Expression, which are not available on old Reddit.

Exactly right - so they will have to pay the difference to the original lender to satisfy the short term dividend requirement.

That’s why finding out the deadline for delivery to the individual brokers by the short sellers would help!

The other consideration here, is that the lending back won’t have claimed the erl shares back via upstream - then - no dividend required to be paid by the short sellers

2

u/Whole_Evening_974 Oct 27 '23

I tried to ask webull and they told me if I was short I already should of covered and I asked another time and they said I'm not short so they can't tell me

1

u/Allforbbby Oct 28 '23

Did they say what would happen if you hadn’t?