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Chimera Energy Corp. (OTCBB: CHMR) announced today that its new Chairman and CEO, Baldemar Rios, has recommended that the Company immediately determine the most expeditious corporate action that would cause a change in the Company's CUSIP number. The Company consulted several OTC market experts who suggested that a change in the CUSIP number was the only way to combat what has been frequently acknowledged to be an unabashed, manipulative "naked shorting" campaign against CHMR.
In addition, the Company filed a Current Report on Form 8-K with the SEC this morning. The 8-K includes a shareholder letter from our new CEO laying out the current status of the Company's efforts to commercialize its technology. The shareholder letter also includes a more detailed discussion of recent trading activities and a primer on "naked shorting."
"The most serious challenge facing our Company is not the highly competitive industry in which we operate, nor the inherent uncertainties of cutting-edge technology, but the brazen greed of the individual(s) who are actively working every day to destroy Chimera before our technology has the opportunity to revolutionize the worldwide production of oil and gas," said Baldemar Rios, Chairman and CEO. "Today we go on the offensive. No longer will we sit idle while anonymous posters and bloggers spout egregious lies about the Company and our technology."
While legally the sale of a security must be settled within three trading days, anecdotal evidence indicates that the market makers involved in "naked shorting" just keep moving the position between themselves every few days, negating the obligation to cover or deliver the position. This activity violates SEC Reg SHO as it relates to short sale activities. More information can be found at: http://www.sec.gov/spotlight/keyregshoissues.htm
To demonstrate the size of the "short" we need to look no further than the company's Share Volume Report from OTCBB.com. As of September 30, 2012 there were 66m shares of Chimera issued and outstanding. Charles Grob, the Majority Shareholder, held 46m shares of restricted stock in certificate form and individual investors held an additional 16m shares through brokerage accounts. There were also 4m free trading shares being held in certificate form. Therefore, as of September 30, 2012 there were only 16m shares of free trading stock available in the market.
Considering those numbers, how is it possible that the Share Volume Report shows more than 17m shares traded hands in the month of September? It seems highly unlikely that more than 100% of the company's free trading stock changed hands during the month. Obviously there is no way for the company to know exactly how many shares are represented in the "short," however several expert opinions put the short at more than 10m shares.
http://www.stockwatch.com/News/Item.aspx?bid=U-i0940703-U%3aCHMR-20121011&symbol=CHMR®ion=U
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