Solar Integrated Roofing Corp. Provides Corporate and Operational Update

Rhea-AI Summary

Solar Integrated Roofing Corp. (OTC: SIRC) provides updates on combating naked short selling & corporate events, with an aggregate amount of over 1.66 billion total shares previously shorted for a total dollar amount of $432.7 million. The company is awarded full implementation for EV Chargers at various California locations and has entered into negotiations to bring back a portion of the former FHP sales force to sell combination roofing and solar jobs.

Positive

• SIRC is taking steps to combat illegal trading practices and maintain integrity in the capital markets.
• The company has been awarded contracts for EV charger installations at various California locations, indicating potential growth in the renewable energy sector.
• The debt reduction program undertaken by SIRC is positioning the company for organic growth and has the potential to have an accretive impact on the company’s financial statements.

Negative

• The unusually high percentage of short sales in the US trading volume could potentially affect the share price and market perception of the company.

HENDERSON, Nev., Nov. 08, 2023 (GLOBE NEWSWIRE) -- Solar Integrated Roofing Corp. (OTC: SIRC) (“SIRC” or the Company”), an integrated, single-source solutions provider of solar power, roofing and EV charging systems provides updates on combating naked short selling & other corporate events.

Trading Pattern Update: As announced on May 2, 2023, the Company engaged an outside company to review the trading patterns of its common stock; monitor, identify and reconcile discrepancies; and target illegal short selling activities. In review of this analysis of unusual trading patterns, the Company believes that certain individuals and/or companies may have engaged in manipulative and/or suspected illegal trading practices that may have artificially depressed its share price.

SIRC joins numerous other public companies that have taken enforcement actions to investigate illegal naked short sellers and maintain integrity in the capital markets.

Daily Short Volume Update: Additionally, a separate study by Solar Integrated Roofing of its US trading data since January 12, 2016 (see chart below) shows an aggregate amount of over 1.66 billion total shares previously shorted (gross and does not account for covers) for a total dollar amount of $432.7 million. An average of 39.63% of Solar Integrated Roofing’s total US trading volume is attributed to the "sell short" trade identifier. This is unusually high and suggests short sellers or market makers are out-of-compliance with Regulation SHO and the "Fair Market Making Requirement".

In 2005 the SEC passed Regulation SHO mandating the public disclosure of short sale trade identifiers from every single US Exchange. In 2008 the Fair Market Making Requirement amendment to Regulation SHO was passed and was designed to stop illegal or manipulative market maker short selling in US Stocks.

https://www.sec.gov/rules/final/2008/34-58775.pdf

The original SHO proposal of 2003 the SEC clearly identified that “More significantly, naked short sellers enjoy greater leverage than if they were required to borrow securities and deliver within a reasonable time period, and they may use this additional leverage to engage in trading activities that deliberately depress the price of a security.”

Regulation SHO requires bona-fide market-making activities to include making purchases and sales in roughly comparable amounts. The Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security. Likewise, where a market-maker posts continually at or near the best offer but does not also post at or near the best bid, the market-maker's activities would not generally qualify as bona-fide market-making. Moreover, a market-maker that continually executes short sales away from its posted quotes would generally not be engaging in bona-fide market-making.

Date	Short Volume	Total Volume	Percent	VWAP	$Value
11/6/2023	1,610,720	4,053,492	39.74%	$0.004	$6,443
11/3/2023	3,052,752	9,319,744	32.76%	$0.004	$12,211
11/2/2023	4,765,405	12,171,311	39.15%	$0.004	$19,062
11/1/2023	1,649,272	8,807,633	18.73%	$0.003	$4,948
10/31/2023	6,230,804	13,566,887	45.93%	$0.003	$18,692
10/30/2023	3,881,545	9,178,992	42.29%	$0.003	$11,645
10/27/2023	11,045,484	18,580,982	59.45%	$0.003	$33,136
10/26/2023	16,390,875	31,988,937	51.24%	$0.003	$49,173
10/25/2023	6,758,274	29,840,216	22.65%	$0.003	$20,275
10/24/2023	12,005,803	28,547,586	42.06%	$0.004	$48,023
10/23/2023	2,185,482	5,340,574	40.92%	$0.004	$8,742
10/20/2023	4,509,087	9,175,181	49.14%	$0.004	$18,036
10/19/2023	6,247,620	21,014,478	29.73%	$0.004	$25,615
10/18/2023	7,361,964	28,411,136	25.91%	$0.005	$36,810
10/17/2023	4,425,554	8,463,851	52.29%	$0.005	$22,128
10/16/2023	1,471,565	2,163,577	68.02%	$0.005	$7,358
10/13/2023	1,540,303	4,214,947	36.54%	$0.005	$7,702
10/12/2023	5,971,169	11,421,244	52.28%	$0.005	$29,856
10/11/2023	3,203,954	8,329,155	38.47%	$0.004	$12,816
10/10/2023	12,974,814	29,948,369	43.32%	$0.004	$51,899
10/9/2023	5,443,274	14,099,770	38.61%	$0.005	$27,216
10/6/2023	4,427,968	8,654,890	51.16%	$0.005	$22,140
10/5/2023	20,893,684	37,432,493	55.82%	$0.005	$104,468
10/4/2023	11,631,744	20,037,719	58.05%	$0.005	$58,159
10/3/2023	4,231,448	11,716,412	36.12%	$0.006	$25,389
10/2/2023	3,504,268	4,268,394	82.10%	$0.006	$21,026
9/29/2023	2,120,028	5,542,285	38.25%	$0.005	$10,600
9/28/2023	3,271,987	4,471,130	73.18%	$0.006	$19,632
9/27/2023	1,023,812	2,668,283	38.37%	$0.005	$5,119
9/26/2023	5,023,984	10,351,689	48.53%	$0.005	$25,120
9/25/2023	2,010,808	4,266,495	47.13%	$0.006	$12,065
Total	1,664,457,318	4,200,353,467	39.63%	$0.26	$432,787,753.00
*Total includes data back to 1-12-16. Chart truncated for viewing.
Data aggregated from the FINRA ORF (Over-the-Counter Reporting Facility)

PLEMCo EV Installation New Contract Awards:

PLEMCo has been awarded full implementation for installation of EV Chargers at three California DGS locations including Angels Camp in Calaveras County, the Independence Maintenance Station in Inyo County, and Wasco State Penitentiary in Kern County.

PLEMCo was also awarded the full implementation of EV Chargers at the California Department of Veterans Affairs in Lancaster.

Roofing Update: McKay roofing was recently awarded a contract in excess of $800,000 to provide commercial roofing replacements for Saint-Gobains Solar Gard facility in San Diego, California.

Residential Roofing and Residential Solar Update: SIRC has entered into final negotiations to bring back a portion of the former FHP sales force to sell combination roofing and solar jobs for McKay and Milholland. The new agreement includes a new financing product which will facilitate financing for combination jobs up to $100,000 per project. This is a market niche for SIRC in that we are one of the few companies that can provide both residential roofing and solar by one company with the unique financing option for both roofing and solar combined.

Continuation Capital Debt Reduction Program: SIRC continues their proven program to reduce debt and position the company for organic growth. Previously, SIRC engaged Continuation Capital, Inc. (CCAP) to purchase past-due obligations from certain vendors of SIRC. A total of $3,508,838.30 in vendor debt was successfully retired.

As mentioned in our Corporate and Operational Update issued November 3, 2023, we currently have court approval to start another debt purchase transaction with Continuation Capital to settle $4,883,174.11 in debt which will be converted into shares of common stock at a thirty-five percent discount. To further enhance our balance sheet and shareholder equity, no additional fees will be charged or warrants issued with this transaction.

The retirement of this debt places the company in a position to scale organically as well as raise capital that can have an accretive impact on the company’s financial statements. SIRC is considering fixed-price offerings such as Regulation A, which allows the company to control the timing of capital infusions as well as dilution.

Press Release Contact:
Julie Brehm
jbrehm@sircfamily.com 

FAQ

What steps is Solar Integrated Roofing Corp. taking to combat illegal trading practices?

Solar Integrated Roofing Corp. is engaging in enforcement actions to investigate illegal naked short sellers and maintain integrity in the capital markets.

What contracts has Solar Integrated Roofing Corp. been awarded recently?

Solar Integrated Roofing Corp. has been awarded contracts for EV charger installations at various California locations, including Angels Camp, Independence Maintenance Station, Wasco State Penitentiary, and the California Department of Veterans Affairs in Lancaster.

How is Solar Integrated Roofing Corp. reducing debt and positioning for organic growth?

Solar Integrated Roofing Corp. has engaged in a debt reduction program to retire past-due obligations from certain vendors and is considering fixed-price offerings such as Regulation A to control the timing of capital infusions and dilution.