Power Nickel Inc (TSX-V:PNPN) announced that the company is preparing to file an official complaint about the “significant and persistent position imbalances” for its stock.
The company said that this imbalance is defined as a broker having an insufficient number of shares in its depository account compared to the number of beneficially owned shares for its customers.
It said this could indicate potential naked short selling and other actions designed to drive down share prices.
Power Nickel CEO Terry Lynch said the takeaway was that it was not remotely normal for the company’s stock to be so severely depressed.
“Indeed, it is clear there is something fundamentally wrong with the price action on the TSXV and indeed all Canadian exchanges,” Lynch said in a statement.
“In my volunteer unpaid role as founder of Save Canadian Mining, we have tried to bring this problem to the attention of Canadian politicians and regulators. However, this lobbying effort had no discernible benefit. Nothing was accomplished.”
The company said the complaint should cause the Canadian Investment Regulatory Organization (CIRO) and the Financial Industry Regulatory Authority (FINRA) to investigate the investment banks it alleges have maintained significant imbalances of more than 100,000 shares for a minimum of eight weeks.
It said the imbalance collectively started at about 3 million shares and now stands at more than 9 million shares on 80% of the float of Power Nickel’s stock that the company can obtain information about.
Lynch, mining investor Eric Sprott, illegal short-selling litigator Wes Christian and Share Intel CEO David Wegner will be discussing the matter in a webinar at 10am on Friday, November 24. It can be accessed here.
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