Global Tech Industries Group Inc (OTCQB: GTII) acquires and develops assets from a range of industries. Its portfolio currently includes businesses and technologies across the green technology, IT, and healthcare industries. GTII stock recently ran to its all time high of $8.98 on speculation of a possible short squeeze. The company has shared reports of naked shorting in the past which contributed investors’ suspicions that a short squeeze could be triggered. Although, the stock dropped to its support level after reaching this all time high, the trading volume for GTII stock is still more than four times its average volume.
GTII Stock News
For much of this year, GTII has been attempting to provide a crypto dividend to its shareholders. In the process of issuing this dividend of Shiba Inu, GTII appears to have become aware of anomalies between what the shareholders’ of record had reported and what was held in brokerage accounts, recorded on the NOBO list, and held at DTCC. Ultimately, FINRA did not agree to GTII’s request to pay a digital dividend because the DTCC was unable to distribute the dividend to a significant number of its shareholders holding shares in CEDE & Co. However, the anomalies found in the dividend process appear to have brought to light a larger problem.
Since June, GTII has alleged that the company has been the victim of consistent naked short selling. The company shared that it would seek to protect shareholders’ interests by contacting FINRA and requesting an investigation into the matter. At the time GTII reported that certain market makers had failed to post regular or continuous proprietary quotations which led them to request a review of their market making activity in regards to GTII’s shares.
It was around this time that GTII issued a warning to shareholders regarding misinformation on social media. Since the company has no official social media presence, investors were advised to rely on information presented in its financial filings and on its website. The reason for this announcement appeared to be social media posts suggesting that the naked shorting was partly attributable in some way to Mr. Curt Kramer and Mr. Seth Kramer.
Convertible Debenture Note Agreement
While GTII clarified that it had “no specific evidence” that any individual or entity was contributing to its alleged naked shorting problem, the company’s CEO – David Reichman – shared that it had entered into a convertible debenture note agreement with Geneva Roth Remark Holdings which is owned by Curt Kramer. However, this note had been paid off by GTII in 2020 and the reserved stock was released by Mr. Kramer in March 2021.
The connection to Curt Kramer and Seth Kramer is one of the reasons for GTII’s rally as many investors believe GTII has been unfairly shorted as a result. In 2013, Curt Kramer was charged by the SEC for violating federal securities laws through his firms – Mazuma Corporation, Mazuma Funding Corporation, and Mazuma Holding Corporation. Through his firms, Kramer obtained unregistered shares in penny stock issuers Laidlaw Energy Group and Bederra Corporation. However, he did not register his shares and surpassed the limit under Rule 504 of Regulation D which allows certain companies to offer and sell up to $1 million in unregistered shares.
Since these shares were not exempt from the registration requirements when they were re-sold, Kramer and his Mazuma firms violated the law by selling billions of shares on the market at a profit. As a result he was required to pay $1.4 million to settle the SEC’s charges.
Curt Kramer’s brother, Seth Kramer, appears to have a similar reputation after reportedly participating in a mortgage fraud conspiracy in 2007 using the HUD-approved lender Cambridge Home Capital LLC to orchestrate the scheme.
However, Seth and Curt Kramer are likely best known in the penny stock world where their various companies have been named in allegations made by HPIL Holding (OTC: HPIL) and VNUE Inc. (OTC: VNUE).
In HPIL’s lawsuit the company describes Power Up Lending Group, Ltd. as an “unregistered securities dealer that engages in convertible market adjustable securities transactions with small public companies” struggling to raise capital. The lender is then able to obtain shares at a steep discount and sell those shares on the open market at a profit.
HPIL alleged that Power Up Lending Group is operating as an unregistered securities dealer in violation of the SEC’s rules adding that its prior transactions with Power Up Lending Group, Ltd. were likely unlawful according to state and federal law. Its management added that it would seek to identify and pursue participants in illegal trading activity of its stock going forward.
Similarly, VNUE has filed a lawsuit against Power Up Lending Group, Ltd. hoping to rescind several convertible notes that were made since it appears that the lender has been running an “illegal convertible note business” for the past few years.
VNUE’s CEO Zach Bair shared that through the company’s attorneys it had learned that “they were alleged to be unregistered dealers, taking advantage of dozens of small companies like ours, and likely breaking the law in the process”.
The association made between GTII and Seth and Curt Kramer has led some to speculate that Power Up Lending Group has been following the same system that Asher Enterprises Inc – also owned by Curt Kramer – has been known to follow.
The conversion ratios for some convertible notes allows the lender to convert their debt into free trading shares at a discount to the worst closing prices over a period of trading days. Some investors believe this could give lenders a reason to short GTII.
GTII Stock Naked Short Interest
It appears that as of September 30th, short volume accounted for 68% of the total volume for GTII stock which has triggered speculation of a potential short squeeze.
Business Overview
Meanwhile, the company itself has continued to develop its business operations through its subsidiaries and affiliates.
Through a stock purchase agreement, GTII brought four optometry locations operated by Bronx Family Eye Care, Inc. under its umbrella in 2021. The company has also acquired an innovative software platform with the technology to observe and understand students’ reactions as they study materials to better inform educators of their students’ needs.
Through its subsidiary – Trento Resources – GTII also owns a 40% interest in the private company Inversiones Trento SpA. which develops and sells rare earth minerals in Chile. The company has 1,400 hectares of mining concessions in Chile with estimated reserves of over 1 million tons of rare earth minerals and iron.
Additionally, GTII owns a fine art collection which includes an original Picasso etching from 1934 as well as a gelatin silver print of Bianca Jagger created by Andy Warhol. Recently, GTII completed a share exchange with Wildfire Media Corp. which is a legal marketing company assisting firms in client acquisition research, media planning and other services.
Media Sentiment
@AvidTrader_ was one of the first to bring to light GTII’s affiliation with Geneva Roth Remark Holdings to light
Technical Analysis
GTII stock held its $4.64 support and could retest the 50 MA on a pullback. So far the wicks have tested the 50 MA twice which could be a sign of trend weakening. However, if the stock tests the 50 MA and has a strong rebound, this could be confirmation of the trend’s continuation. The volume bars are becoming weaker which could be a sign of slowing momentum for GTII stock as well. If GTII stock is able to break through yesterday’s high at $5.83 this could form the structure for higher highs and higher lows.
Accumulation has remained strong despite the pullback and the RSI has cooled off at 52. The MACD is bearish to the upside as well. Since these indicators have reset, there is room for GTII stock to continue its run but without a catalyst or announcement from the company’s management, there may not be enough volume to push the stock past its resistance .
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GTII Stock Forecast
While GTII is diversified across several different industries, the stock is not running on fundamentals. The company has commented on its high short volume which was the trigger for investor’s interest in the stock. Whether a short squeeze materializes remains to be seen, but in the long-run GTII stock will likely drop back to its earlier highs of $2 and below without more catalysts. If the company is intent on targeting the perpetrators of what it believes to be naked shorting, then GTII could begin a share buyback in an attempt to accurately locate all of the company’s shares. Although the company attempted a dividend for shareholders in the past, it has not mentioned any plans for a share buyback.
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