This week we released news of Genius Group’s $37 million spin-off of Entrepreneur Resorts Ltd, and our $10-per-share NFT coupon together with dual listing on Upstream Exchange.
These steps are all part of the playbook we’ve put together to protect our shareholders against illegal trading. Here’s a summary of the first 8 steps I recommend every CEO follows. Also posted on Twitter:
Step 1: Hire ShareIntel
Hire ShareIntel or BuyIns.net to track shares for 30 days. More likely low share price is due to (A) unhealthy business (B) toxic financing than (C) naked shorts. Get proof first.
Step 2: Hire Lawyer
Hire specialist lawyer like Wes Christian to advise on steps during first 30 days so the CEO & Board are prepared with next legal steps if/when they have proof of naked shorts.
Step 3: Healthy Company
Ensure naked shorts can’t achieve their goal of bankrupting or delisting co by getting co cash positive and profitable, and release guidance to reassure investors.
Step 4: Set up Task Force
Set up Board-led Task Force to take actions. Audit committee protects against internal fraud & theft. Task force is needed to protect against external fraud & theft.
Step 5: Report to SEC
Report to SEC once you have completed first four steps, as well as any other appropriate regulators advised by lawyers. To ensure you’re being compliant.
Step 6: Investor Comms
Communicate to investors as they need to understand your findings and actions. Investors will support you if they know you’re working together to solve the issue.
Step 7: Issue NFT Coupon
Issue NFT Coupon with a blockchain-based exchange like Upstream Exchange. This can be done within 30 days and can expose counterfeit shares.
Step 8: Special Dividend
Issue special trackable dividend, whether blockchain-based, merger or spinoff that forces share count. This may take 3 to 9 months depending on complexity.
Bonus Step A: One off counts have only temporary effects, as naked shorts can cover and then short again the day after. So build an ongoing, long-term strategy.
Bonus Step B: NakedShorts can only be eradicated through regulation or tech (blockchain exchanges, t-zero transactions). CEOs should lead by example with education & advocacy.
I hosted a CEO Roundtable Livestream which can watch here where we discuss strategies and I break down each step.
If you’re interested to see how we released news of our spin-off, you can find it here.
And here’s the press release on our $10-per-share NFT Coupon
With the count date for the NFT Coupons set for 28th February, it’s going to be an eventful month for the company. If you’re one of our students, partners or investors, thanks for your ongoing support and for standing by our side.