As we have discussed in the past, any Paulson investor who wants to sell has to sell short. Many Paulson investors sell their shares and keep their warrants. Imo, this is the major downside to raising money via Paulson. Unfortunately, Paulson is a very easy way for management to raise money without having to do traditional road shows. NP got CYDY essentially hooked on the easy money and failed to develop the knowledge and skill set of doing road shows and traditional financing. Imo, this has been a huge drag on the stock price. Instead of doing raises at increasing valuations with buy-side investors, we are constantly raising at depressed prices from retail investors. Raising money the proper way with buy side investors can create a positive feedback loop with investors holding their shares and knowing what they own and spreading the word among other buy side firms. And doing subsequent raises at higher valuations.

Part of NP's approach was that it was easy to raise money. The other parts is that the buy side investors wanted to get rid of NP. For example, the Goldman Sachs partner fund wanted to invest, but said they would not do so with NP at the helm.

Similar to the Paulson investors, anytime that Fife wants to sell, he will be selling short. My guess is that 80 to 90% or more of the short volume is Paulson plus Fife.

For those who are newer to the board, Fife provided loans to CYDY that are convertible into shares. Given that we don't have enough cash, the loans have been converted to shares at a discount to the market price at the given time. Fife then sells those shares to liquidate into cash. So as long as he can short sell his shares above his acquisition price, he makes the spread.

So, it is not naked short selling per se, because both the Paulson and Fife have shares. Those shares just exist in Computershare.com accounts and can only be sold short.

I can't wait until we are done with this toxic fundraising.