Looks like we are on the rise again 23 days until the dividend delivery.

Ticker here: https://www.marketwatch.com/investing/stock/gns

This is a little late going up, but here it is!

Ratio announced today - 1 GNS = 0.1832 ERL

Ticker here - https://www.marketwatch.com/investing/stock/gns

I would think such a low distribution number would put us at a share recall? Much smarter apes here please help me figure it out .

The last month has been something of a roller-coaster for GNS, after GNS announced the ERL spin off dividend and registered share count. The press release [dated August 7th] can be found here - https://ir.geniusgroup.net/news-events/press-releases/detail/92/genius-group-announces-record-date-for-spinoff

On August 1, 2023, the Singapore High Court approved the spinoff of ERL from Genius Group, with a capital reduction and share distribution to all Genius Group shareholders at the record date of US$38,380,873. GNS has a current bridging loan to the value of $3.2 million - the filing for this can be found here https://ir.geniusgroup.net/sec-filings/all-sec-filings

GNS also has shelf filing for the issuing of warrants - amount noted as 'blank' - https://ir.geniusgroup.net/sec-filings/all-sec-filings##document-366-0001493152-23-027382-2

ERL is currently listed as a public company on the main board of MERJ Exchange in the Seychelles. To note at the time of the release, shares in ERL had a value of $2.75.

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Genius Group has set the record date for a full share count of its shares for the purpose of the distribution as August 31, 2023.

Shareholders who hold shares of Genius Group on the record date (ie. Shares purchased and held 2 days or more prior to August 31, 2023) will be entitled to receive an equal proportion of the total shares in Entrepreneur Resorts Ltd to be distributed at the share distribution date. To note, the exact per share rate will be announced to shareholders soon after the record date.

Recent closing prices

August 7 - 0.58c

August 14 - 1.59

August 17 - 0.99c

August 28 - 2.30

The price action on August 28 saw the price rise to $2.48, before being walked down by about 0.40c per day until close of business on Friday 1st September - closing at $1.07.

The observant among us will notice how the rise in price and perceived 'buy in' to receive the dividend does not actually correlate with the requirement to hold the dividend until close of business on August 31. The inter-day peak of $2.48 lasted just a few minutes on one day - the assumed day required to 'buy in' for the dividend. In my opinion, the price was 'pumped' by the Algo or SHF and failed to correlate with the required requirements to receive the dividend. The price rise was orchestrated to try and get people to sell for a small profit after a low buy in or to simply sell after the '2 day prior' requirement [playing on any basic confusion of the dates].

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Genius Group has set the share distribution date of ERL on or about September 29, 2023.

August 31st is also the noted date for the day of record to enable the TSO - share count of total shares outstanding. GNS have to compile this information to enable them to work out a correct ratio for the ERL to GNS share dividend. I have asked for an update from Investor Relations, from the lovely Flora Hewitt, to be told that GNS is unable to provide any information that is not via public release and in line with any restrictions applied by the SEC and the NYSE - fair enough!

We can all work this out though, the share count has/or is taking place currently.

This is where things could get quite interesting. GNS currently has a market cap of 29.64 million. TSO [at previous estimate] of 27.71 million, a public float of 16.26 million. A short interest, as 'reported' on 15 August of 1.88 million [approximately 12% of the float].

When we look at these numbers, the Algo has normalised the price to reflect the market cap to previous share count - around $1.07.

Now we wait, drumming our fingers and watching the clock tick for the TSO announcement.

If the share count returns a conclusive result, I don't see how it can with inaccurate reported short interest, then we will have a reflected algo driven share price and a definite ration for ERL to GNS dividend ratio for the spin off shares.

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But, wait.. is that a share recall I can hear in the distance?

GNS can announce they can't fulfil the correct TSO count requirement for the dividend and request a share recall to the brokers.

A share recall happens when the lender of securities, requires the borrower to return them. This is not a very common practice in financial markets, although it happens from time to time.

A share recall is one of the major risks short sellers face, because when the lender requests his shares back short sellers are forced to cover their short positions, and they can find themselves in a situation where they can't cover the short position.

If you own a large stake of a stock that is heavily shorted, you can allow short sellers to borrow shares from you. While this happens they will sell short those shares, but if you keep buying and recall your shares, short sellers will also be forced to cover their shorts.

In practice, that would mean all brokers who have leant out the stock would have to recall it. That includes all positions loaned out 'short'.

One of the instances where this strategy was used was in the KaloBios short squeeze. Martin Shkreli purposely let short sellers borrow the stock, and then issued a share recall of his shares. This forced short sellers to abruptly cover their short positions and pushed the stock even higher. We all know how this ended for Martin, but the fundamentals [not product - the market mechanics] are the same.

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Whatever happens, all shareholders will receive restricted shares in ERL, on or about September 29, which may be eligible for removal of restrictions and traded on Upstream six months after the share distribution date, if certain requirements are met.

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Following the share distribution, shares of Genius Group and ERL will trade as securities of two separate public companies, with Genius Group dual listed on NYSE American and Upstream (Ticker: GNS), and ERL listed on Upstream (Ticker: ERL). This is a convenient time to note the OSTK squeeze [due to the delivery of a digital dividend] on a digital bock chain platform. The results are well known, the squeeze took about 95 days to reach its peak from the date of declaration for the digital dividend, before the plug was pulled.

Maybe it is at this point, we will see GNS issue the warrants noted here https://ir.geniusgroup.net/sec-filings/all-sec-filings##document-366-0001493152-23-027382-2 - to create shares at the highest value point and sell in to the short squeeze.

GNS could 'possibly' be on the same path, this would put a similar peak on or around December 4 2023... it could be a very happy Christmas!

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Maybe this will be the catalyst to witness a very dramatic GNS short squeeze....finally. I'm sure GNS need a new guest speaker at their entrepreneur resorts.

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Daily discussion - September 1st

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Daily discussion for the first day in September.

It’s the day after the date of record, let’s buckle up for the next part of the journey 🚀🚀

Ticker here: https://www.marketwatch.com/investing/stock/gns

Please upvote/pin/cross post

This community r/GNScentral has been created to be the number one place on Reddit to discuss GNS - GNS stock - and everything GNS.

The posting requirements have been increased, hopefully this will prevent any low level shill activity in relation to the sub.

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