Great news from ACON - Reverse Split + New CUSIP number - Could we see a forced buy back?
Alright, so here’s the deal with $ACON (Aclarion, Inc.): they just announced a reverse split and new CUSIP number. This is setting the stage for some interesting things to happen, especially since this stock has been heavily shorted, and I’m talking about illegal naked shorts.
What’s Going On:
1. Reverse Split: Aclarion is restructuring its shares. If you hold shares, you’ll have fewer after the split, but they’ll be worth more per share. The total value of your holdings stays the same.
2. New CUSIP Number: A new identifier for the stock will be issued post-split. This is a big deal because it forces brokers and clearinghouses to reconcile all shares, which will expose any phantom shares from naked shorting.
Why This Matters:
ACON has been heavily shorted, and the data hints at some shady activity:
- Short Interest: Over 31% of the float is shorted.
- Off-Exchange Short volume: 189,222,969 with a short ratio of 58%!
- FTDs (Failures-to-Deliver): There have been consistent settlement issues, which is usually a red flag for naked shorting.
- Reg SHO Threshold List: ACON is on the list, which means it’s had significant unresolved settlement problems.
Now, with a reverse split and new CUSIP, things get spicy. If there are naked shorts, these positions have to be covered or closed because everything has to match under the new CUSIP. No shortcuts.
What Could Happen:
1. Forced Buybacks: If brokers or clearinghouses can’t account for all the shares, they’ll force naked shorts to cover. This could trigger a short squeeze, sending the price flying.
2. Volatility Incoming: Reverse splits often attract attention from traders, institutions and hedge funds, so expect some big swings.
3. A Potential Catalyst: If regulatory bodies or brokers crack down on these positions during the CUSIP change, it could put insane upward pressure on the stock price.
Bottom Line:
This might be the setup for something big. ACON’s reverse split and new CUSIP could force naked short sellers into buybacks, and we all know what happens when that goes down. Is this the next short squeeze in the making? Could be.
A quick refresher of what has happened over the past few weeks:
ACON announced their closing for the $14.4 Million Public Offering of Common Stock and Warrants allowing it to redeem all Series B Preferred Stock, which improves its financial structure
The company is planning to redeeming/buying back all of its Series B Preferred Stock, which basically means they're going to pay back the investors who own those shares at a premium.
3.The company is on the Regulations SHO list. These are lists of companies that have been illegally shorted and multiple FTDs and will need to cover. SEC does a great job in investigating on these companies and imposes fines or penalties on those involved. Also force buy backs. Hence the reason why ACON is conducting the reverse split earlier than anticipated.
The companies directors and officers agreed on a 90 day lock-up period after the closing of their $14.4M dollar deal. The company will not be selling, offer, lend, grant or otherwise dispose any common stock or security.
The company also released an SC 13G stating that SEG Opportunity Fund, LLC holds a significant but passive investment in Aclarion Inc with 4.4mm ACON common stock. This represents 9.9% of the total outstanding shares of the company.
After the Nasdaq compliance hearing, the panel has extended their demonstration of Nasdaq compliance until April. After the reverse split on Wednesday January 29, 2025. They should be in compliance by February 5th, 2025 (5 consecutive trading days above $1)
The company currently has $13M cash in hand and is trading at a market cap of $2M
For a stock that has been getting a lot of back lash and hate, this is a stock that is making the right move and moving into the right direction.
Disclaimer: This isn’t financial advice, just sharing what I’ve found. Always do your own research before trading.
Psa: my average is 0.055 as I averaged up today. Since a lot of people told me I'm trying to pump this because I'm bag holding shares at 0.30 lol
I've laid it out for y'all, strong buy and hold! The naked shorts will need to cover by Tuesday, don't sell your shares to them for pennies. This reverse split news is great news for the company. And mind I remind you the company isn't selling (read #4 again)