Sky Quarry Inc. Issues Letter to Shareholders
Rhea-AI Summary
Sky Quarry Inc. (NASDAQ: SKYQ) has issued a letter to shareholders on January 9, 2025, encouraging them to transfer their stock holdings from margin accounts to cash accounts. The company explains that this strategic move aims to prevent share lending to short sellers, which can potentially exert downward pressure on the stock price.
The letter outlines a simple process for shareholders to make this transition by contacting their brokerage firms to convert their margin accounts into cash accounts. Sky Quarry believes this collective action could help stabilize the stock price and better reflect the company's market fundamentals and growth trajectory.
Positive
- Company takes proactive steps to address potential short selling pressure on stock price
- Implementation of shareholder-focused strategy to protect stock value
Negative
- Indication of concerns about short selling pressure affecting stock price
- Possible existing stock price volatility requiring management intervention
News Market Reaction – SKYQ
On the day this news was published, SKYQ declined 4.14%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WOODS CROSS, Utah, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry issued a letter today as part of its ongoing commitment to executing its comprehensive business plan and driving long-term shareholder value. In the letter, Sky Quarry encourages shareholders to consider transferring their shares from margin accounts to cash accounts, a move designed to help ensure a more stable and accurate reflection of the Company’s growth trajectory and market fundamentals.
January 9, 2025
Dear Shareholders,
As we enter 2025, we hope you are as excited about Sky Quarry's future as we are. Our focus remains on executing our multi-tier business plan and growing shareholder value. As 2025 kicks off, we would like to take this opportunity to discuss an important topic regarding your Sky Quarry stock holdings—specifically, the type of account in which you hold your shares of Sky Quarry common stock.
If you currently maintain your shares in a margin account, please consider transferring them to a cash account. This recommendation is driven by the mechanics of margin accounts and their impact on our stock dynamics, particularly concerning the ability for your brokerage firm to lend out your shares to potential short sellers.
Why Does This Matter?
In a margin account, your brokerage firm may lend your shares to other market participants, often to short sell shares of Sky Quarry’s common stock. Short selling has the potential to exert downward pressure on our stock price, which we believe has the effect of misrepresenting our company's actual market performance and undermining the value of your investment.
Transferring your stock holdings to a cash account ensures that your shares cannot be lent to short sellers. We believe that these actions can help protect the integrity of our stock price and support a trading environment that will better reflect our company’s underlying fundamentals.
How to Make the Transition
Switching to a cash account is typically a straightforward process:
- Contact Your Brokerage Firm: Contact your brokerage firm and request to convert your margin account into a cash account.
- Confirm Settlement Timing: Understand the timelines and implications for trades in a cash account, which may differ from those in a margin account.
- Verify Account Updates: Ensure all account features and settings align with your financial goals after the transition.
We believe that this collective action may help to stabilize our stock price and align its performance with our fundamentals and growth potential.
Thank you for your continued trust and support. Together, we are building something extraordinary, and your proactive efforts play an integral role in our shared success.
Should you have any questions or require assistance, please do not hesitate to contact our investor relations team at ir@skyquarry.com
Respectfully,
Sky Quarry Management
About Sky Quarry Inc.
Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit skyquarry.com.
Forward-Looking Statements
This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company’s Form 1-A offering statement filed with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained.
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
SKYQ@mzgroup.us
www.mzgroup.us
Corporate Contact
Jennifer Standley
Director of Investor Relations
ir@skyquarry.com
Company Website
www.skyquarry.com
FAQ
What action is Sky Quarry (SKYQ) requesting from shareholders in January 2025?
Why is Sky Quarry (SKYQ) asking shareholders to move to cash accounts?
How can SKYQ shareholders transfer their shares to cash accounts?
What impact does Sky Quarry expect from shareholders moving to cash accounts?
