This is a good point. U3 is defined as:
Trading is halted because NASD has determined that an
extraordinary event has occurred or is ongoing that has had a
material effect on the market for the OTC Equity Security or has
caused or has the potential to cause major disruption to the
marketplace and/or significant uncertainty in the settlement and
clearance process.
https://www.finra.org/sites/default/files/Not...019063.pdf
This "extraordinary event" is ambiguous and can mean anything. It could be negative or positive. Same with the aforementioned extraordinary event causing a "material event" or a "major disruption to the marketplace". A positive would be a major disruption to shorts especially so it was halted. Negatives such as a scam (which I don't think is the case) cause major disruptions to the marketplace. But the fact of the matter is, why don't they halt all penny stocks since most of them are sketchy and scam? IMO CRGP is a victim of naked shorts. With the naked shorts and share buy back going on, a major disruption is happening. Basically, a U3 can go either way. It is unclear in the definition. But I think that if something positive was happening, then the halt would be a U3.
Trading is halted because NASD has determined that an
extraordinary event has occurred or is ongoing that has had a
material effect on the market for the OTC Equity Security or has
caused or has the potential to cause major disruption to the
marketplace and/or significant uncertainty in the settlement and
clearance process.
https://www.finra.org/sites/default/files/Not...019063.pdf
This "extraordinary event" is ambiguous and can mean anything. It could be negative or positive. Same with the aforementioned extraordinary event causing a "material event" or a "major disruption to the marketplace". A positive would be a major disruption to shorts especially so it was halted. Negatives such as a scam (which I don't think is the case) cause major disruptions to the marketplace. But the fact of the matter is, why don't they halt all penny stocks since most of them are sketchy and scam? IMO CRGP is a victim of naked shorts. With the naked shorts and share buy back going on, a major disruption is happening. Basically, a U3 can go either way. It is unclear in the definition. But I think that if something positive was happening, then the halt would be a U3.
