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re: Spec Play - HGRAF

Posted on 8/17/26 at 1:01 pm to
Posted by cgrand
HAMMOND
Member since Oct 2009
50827 posts
Posted on 8/17/26 at 1:01 pm to
quote:

Your broker may lend your shares out, without your permission, to make money for themselves
no they cannot. You must give permission. In a standard cash account that permission must be specifically opted into. In a margin account, the permission is part of the agreement. Read your terms and conditions.

But, you are correct a standing sell order prevents lending on the number of shares you have included in the order.
Posted by Hangit
The Green Swamp
Member since Aug 2014
47701 posts
Posted on 8/17/26 at 1:26 pm to
quote:

no they cannot. You must give permission.

Many have been caught and lightly punished. I am not saying it is ok for them to do it.
Posted by cgrand
HAMMOND
Member since Oct 2009
50827 posts
Posted on 8/17/26 at 1:50 pm to
is there a specific example of a legitimate brokerage knowingly and deliberately violating SEC law and FINRA regulations by lending shares without consent? Doing so would not be a minor offense and would result in substantial fines and penalties.

The more likely scenario is that users opt in to lending without knowing it, per the terms and conditions agreement that they click “yes” on, and then claim that their shares were lent without permission

Anyway, if you are an HGRAF shareholder you should not be lending your shares. Check your account permissions and turn off that option if it exists

Let’s see this thing explode, on its merits
Posted by ynlvr
Rocket City
Member since Feb 2009
5625 posts
Posted on 8/17/26 at 2:35 pm to
Took my 31,000 out of the lending pool today. I admit to a bit of short term greed given the juicy interest. But, I’ll gladly trade out for nice long term gains.
Posted by dstone12
Texan
Member since Jan 2007
41289 posts
Posted on 8/17/26 at 2:38 pm to





Also congrats on 31000.

That’s a great number.
Posted by cgrand
HAMMOND
Member since Oct 2009
50827 posts
Posted on 8/17/26 at 2:47 pm to
keep in mind WHY all these lending requests are happening…it is unlikely your major brokerage owns any shares of HGRAF as an OTC issue. If Schwab or fidelity or similar held a position in HGRAF themselves they would gladly lend them out. They don’t because they can’t (usually). But you do…so when a trader on Schwab wants to make a short trade, the shares have to come from somewhere
This post was edited on 8/17/26 at 2:48 pm
Posted by FieldEngineer
Member since Jan 2015
3146 posts
Posted on 8/17/26 at 3:17 pm to
I only have 3k, but I'm removing them from lending as we speak.
Posted by PeteRose
Hall of Fame
Member since Aug 2014
18302 posts
Posted on 8/17/26 at 3:48 pm to
quote:

I only have 3k


Don’t think of it like that. Think you’re voting for 3 thousand people.
Posted by dstone12
Texan
Member since Jan 2007
41289 posts
Posted on 8/17/26 at 3:55 pm to
quote:

Don’t think of it like that. Think you’re voting for 3 thousand people.
or that you have three thousand more than 99% of the people.


Good place to be.
This post was edited on 8/17/26 at 4:37 pm
Posted by Hangit
The Green Swamp
Member since Aug 2014
47701 posts
Posted on 8/17/26 at 4:21 pm to
quote:

is there a specific example of a legitimate brokerage knowingly and deliberately violating SEC law and FINRA regulations by lending shares without consent?


I have heard of it happening a lot, but had no specifics off the top of my head. I asked AI

Yes, major brokerages have been penalized by regulators for violating short-selling and securities lending regulations, though formal infractions usually cite failure to meet "locate" or "close-out" rules rather than explicitly stealing or manually lending specific retail shares without a signed agreement.Legally, standard margin account contracts and customer agreements contain broad hypothecation clauses giving brokers the right to lend out securities. Because shares are typically held in "street name", brokers do not need explicit, trade-by-trade permission if the customer agreed to the baseline terms (often bundled automatically upon opening a margin account or opting into a yield/stock lending program).However, enforcement actions highlight instances where broker-dealers mishandled these rules or executed improper lending and short sales:

Robinhood Financial and Robinhood Securities: Fined a combined $45 million by the SEC for multiple violations, which included failing to comply with Regulation SHO's locate, order-marking, and close-out requirements regarding their stock lending and fractional share frameworks.

Goldman Sachs: Hit with a $15 million SEC penalty for violating Regulation SHO by improperly providing and logging "locates" to customers without performing adequate reviews to verify if shares were actually borrowable.

Merrill Lynch: Penalized $6 million by FINRA for allowing short-sellers to process sales without first properly confirming or arranging the necessary stock borrows.
Posted by cgrand
HAMMOND
Member since Oct 2009
50827 posts
Posted on 8/17/26 at 5:40 pm to
quote:

though formal infractions usually cite failure to meet "locate" or "close-out" rules rather than explicitly stealing or manually lending specific retail shares without a signed agreement
aka negligence. Don’t lend your shares or agree to lend them and this won’t happen.
Posted by Swazla
Member since Jul 2016
1981 posts
Posted on 8/17/26 at 6:34 pm to
HydroGraph Announces C$50 Million Bought Deal Public Offering of Units

CEO.Ca

Looks like $4.90/share with a an option to buy more.

VANCOUVER, British Columbia, Aug. 17, 2026 (GLOBE NEWSWIRE) -- HydroGraph Clean Power Inc. (CSE: HG) (OTCQB: HGRAF) (“HydroGraph” or the “Company”), a leading producer of ultra-pure graphene, is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp., as sole underwriter and bookrunner (“Canaccord” or the “Underwriter”), pursuant to which the Underwriter has agreed to purchase, on a “bought deal” basis, 7,353,000 units of the Company (the “Units”), at a price of C$6.80 per Unit (the “Offering Price”) for aggregate gross proceeds of C$50,000,400 (the “Underwritten Offering”).

Each Unit will consist of one common share of the Company (each, a “Common Share”) and one-half (½) of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one Common Share (each, a “Warrant Share”) at a price of C$8.16 for a period of 60 months following the Closing Date (as defined herein).

The Company has also granted the Underwriter an option to purchase up to an additional 1,102,950 Units to cover over-allotments, if any, and for market stabilization purposes at the Offering Price for additional gross proceeds of up to C$7,500,060 (the “Over-Allotment Option” and together with the Underwritten Offering, the “Offering”). The Over-Allotment Option is exercisable, in whole or in part, for a period of 30 days after and including the Closing Date.

The net proceeds of the Offering are expected to be used for business development activities, expansion of American facilities, working capital and general corporate purposes.
Posted by cgrand
HAMMOND
Member since Oct 2009
50827 posts
Posted on 8/17/26 at 6:40 pm to
2.5 to 3% dilution. Not terrible
Posted by masoncj
Atlanta
Member since Jun 2023
862 posts
Posted on 8/17/26 at 6:53 pm to
Timing is interesting for sure.

They just had a raise earlier in the year…wonder why extra funding is needed now

Can only speculate but hope it’s due to need to fulfill contracts asap
Posted by masoncj
Atlanta
Member since Jun 2023
862 posts
Posted on 8/17/26 at 6:59 pm to
Also, I think this means they got $80 million in cash on hands and zero debt

Which is unbelievable for a pre-revenue company
This post was edited on 8/17/26 at 6:59 pm
Posted by Guntoter1
Baton Rouge
Member since Nov 2020
1856 posts
Posted on 8/17/26 at 7:07 pm to
quote:

They just had a raise earlier in the year…wonder why extra funding is needed now


So we’ve had two dilutions after she said we might only need one. (According to my poor memory)
I’m pissed again.
Someone explain this to me.
Posted by masoncj
Atlanta
Member since Jun 2023
862 posts
Posted on 8/17/26 at 7:12 pm to
Well, this is kind of different and that it’s not really a private offering

This Cannacord company is on the hook for all the shares

Such small dilution 3% to basically double their cash reserves

Is well worth it, put them in a super strong financial position again since they don’t have any debt

Posted by masoncj
Atlanta
Member since Jun 2023
862 posts
Posted on 8/17/26 at 7:14 pm to
Better answer from ChatGPT than what I can provide

3. The C$6.80 price is significant.

The deal isn’t being done at some enormous discount just to get the financing completed. Investors are paying C$6.80 per unit, and each unit contains:

* 1 common share
* ½ warrant
* The warrant has an C$8.16 exercise price
* 5-year warrant life

That means the new investors are effectively saying, “We’re willing to put C$50M into HydroGraph today, and we’ll pay another C$8.16 per share if the company performs well enough.”

That’s a pretty interesting vote of confidence.

There’s another thing I like about this deal

The warrants don’t immediately dilute HydroGraph by another full share for every share issued.

HydroGraph is issuing 7.353M shares and approximately 3.677M warrants.

If those warrants eventually get exercised, HydroGraph could receive another:

3.677M × C$8.16 ˜ C$30M

of additional cash.

So you potentially have:

C$50M financing today ? potentially another C$30M later

while the warrant exercise itself would only happen if the stock gets above C$8.16 and holders choose to exercise.

And the company says the money will be used for U.S. facility expansion, business development, working capital and general corporate purposes—not simply plugging a debt hole.
Posted by NaturalBeam
Member since Sep 2007
15047 posts
Posted on 8/17/26 at 7:16 pm to
Well if it were to pay salaries or something, then I’d be pissed too. But they have enough for that already, as well as the move to Austin.

That tells me this is for something bigger that they couldn’t announce until the redomicile was more certain, such as the sudden need to build a bunch of hyperions. Or at least that’s what I’m going to tell myself…
Posted by masoncj
Atlanta
Member since Jun 2023
862 posts
Posted on 8/17/26 at 7:20 pm to
Or this investment company sought HG out and made them a deal they couldn’t refuse, which sure does seem to be the case
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