9001 shares | NOVC Message Board Posts

Novation Companies, Inc.

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Msg  148554 of 148598  at  9/7/2019 10:14:58 AM  by

poolblue3


 In response to msg 148552 by  golfar1
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Re: 9001 shares

IMHO none of the NOVC shorts see www.otcshortreport.com below are legal because no locate can be made and no investor will lend their shares because there is no money in it. Per an investigation FINRA stated OTCBB issues can be legally Naked Shorted “Fail to Deliver” (see SEC REG SHO) by the market maker but no market maker will take that risk with no return ROI on a penny stock.

Someone is shorting with a vested interest in keeping the price low. Could this interest be converting compensation into RSU restricted stock units valued at pennies.

NOVC Board allowed 3 top Healthcare-staffing.com HCS leaders to walk within weeks of the start of 2019. One Richard Rector ex CEO left 4/22/19 with 1m RSU in NOVC for less than 2 years of service. Per detailed interviews with several ex HCS leaders Mr. Rector’s performance was suspect, possibly grossly negligent. Mr. Rectors exit terms must be disclosed. One Manager was promised the COO position by founder Bill Dallas. Given all due respect to CEO of NOVC he is not as qualified as this leader. NOVC Board has kept HCS website down for months. Could NOVC be planning to sell HCS to Jeff Eberwein now CEO of Hudson RPO traded HSON and ex COB of NOVC during Ch 11. I hope not because my research shows HCS has tremendous potential tax exempt.

IMHO the identity of NOVC Sr Debt Holders (those that received a windfall in CH 11 and now 31M common (9M common + 22.250M 10 yr Warrants at .01) must be disclosed. See Exhibit 10.1 per 10Q Q2 will show Taberna I & II received 67% of 31.250M shares in lieu of deferred interest. Why no cram down in Ch 11. Joel Sher NOVC Ch 11 attorney received a black-tie award for NOVC 2017 Ch 11. Kodiak CDO is held by FBR.

My research shows these CDOs are held by Fortress, Wesley Edens, COB and Peter Briger, Head of Fortress Credit. These two have recently cashed billions in exits at One Main OMF to Apollo Global Mgt and NationStar to Mr. Cooper symbol COOP aka WAMU Washington Mutual. Edens ran Blackrock MBS (now a major investor in Thomas Akin IMH Impac Mortgage Holders a leader in Subprime aka Non QM mortgage loans.

Ask NOVC Board why they do not duplicate Fortress' playbook at Newcastle Inv Group NCT which spun off NRZ New Residential Inv Group (a tax exempt MREIT) and then converted NCT into DS Drive Shack which kept all of NCT’s NOLs. Wesley Edens spoke passionately about NCT NOLs and how important they are to Drive Shack DS. So why has NOVC Board failed to disclose any plan to monetize $730M (NOLs and more important Unrealized Tax Capital Losses) even after NOVC Shareholders gave Sr Debt a windfall in Ch 11 and now 31.3M common with no cram down? See below an email to a major NOVC investor.

Novation Companies, Inc. Common per www.otcshortreport.com

(NOVC)

Naked Short Interest

Equity Short Interest

NOVC

- Short Volume Report (REGSHO)

All RegSho Dated reported by: FINRA

Regular VolumeShort VolumeAug 08Aug 09Aug 12Aug 13Aug 14Aug 15Aug 16Aug 19Aug 20Aug 21Aug 22Aug 23Aug 26Aug 27Aug 30Sep 05Sep 060100,000200,000300,000400,000Highcharts.com

Historical Short Volume Data for NOVC

Date

Close

High

Low

Volume

Short Volume

% of Vol Shorted

Sep 06

NA

NA

NA

43,620

38,385

88.00

Sep 05

NA

NA

NA

91,645

9,001

9.82

Aug 30

NA

NA

NA

15,642

3,308

21.15

Aug 27

NA

NA

NA

25,086

15,000

59.79

Aug 26

NA

NA

NA

270,264

208,615

77.19

Aug 23

NA

NA

NA

21,000

20,000

95.24

Aug 22

NA

NA

NA

27,022

20,522

75.95

Aug 21

NA

NA

NA

84,164

51,500

61.19

Aug 20

NA

NA

NA

116,261

93,761

80.65

Aug 19

NA

NA

NA

96,700

71,675

74.12

Aug 16

NA

NA

NA

52,020

50,750

97.56

Aug 15

NA

NA

NA

108,326

50,400

46.53

Aug 14

NA

NA

NA

45,955

13,763

29.95

Aug 13

NA

NA

NA

105,704

68,760

65.05

Aug 12

NA

NA

NA

333,019

217,752

65.39

Aug 09

NA

NA

NA

81,577

23,910

29.31

Aug 08

NA

NA

NA

29,436

26,024

88.41

EMAIL to one shareholder but applicable to any shareholder in NOVC

“Who would short NOVC at this stage. Possibly only those instructed by Board (DX investors Barry Igdaloff (also DX Board Member) and Howard Amster & Chuck Gillman/Jeff Eberwein appointees David Pointer, Lee Keddie and Tim Eriksen none have skin in the game) to keep the price per share low so as to convert board compensation into RSU valued at pennies.

As owners of X common shares in Novation Companies Inc. NOVC you should be aware NOVC Board of Directors is presently comprised of a majority which has not bought nor owns other than RSU they awarded themselves any NOVC common shares. These board members have awarded themselves for services in lieu of pay millions in RSU valued at pennies per share Per 14A Proxy. What sense does that make for ordinary shareholders? NONE & it breaches regulations defined under Sarbanes Oxley Act SOX.

This is a major problem for all NOVC common shareholders, and I would encourage you to make a change as soon as possible. This has caused for ordinary shareholders a major conflict of interests between the NOVC board members and ALL other NOVC common shareholders. The lower the share price of the NOVC common shares on a day-to-day basis, the more shares RSU restricted share units each director is awarded for "services" in attending board meetings.

With such a counter-productive financial incentive, why would NOVC Board of Directors want the share price to rise? In fact, why would the directors not prefer that the share price falls, so they get a larger number of shares RSU for the same amount of time?

This is probably why NOVC Board of Directors have failed to announce a business plan for the company even after 4 years, CH 11 at cost of est $12M and now 31.3M common shares/warrants at less than ONE CENT (9M common + 22.250 M warrants)?

Has this affected NOVC board's conduct in announcing that the Cleanup Call Rights owned by the company have no value when evidence from Michael Huang, PM at NRZ suggest otherwise? Thomas Akin major NOVC Shareholder is the biggest shareholder in IMH and DX. IMH is moving aggressively in the same asset class NOVC owns call rights on $3B portfolio. IMH stock has almost double in the last few weeks. Would the board actually prefer that a "going concern" qualification be included in the auditor's report, as it recently returned?

All of these considerations have given short sellers a field day in running down the common share price of this once NYSE-listed company. Short sales in the first three weeks of the current month have totaled more than 900,000 shares, obviously hoping to drive the common shares below one cent. Yet the market gets minimum disclosure of business prospects even for the operating subsidiary, www.Healthcare-Staffing.com HCS posted a year over year increase of more than 20% for Q3, much less plans for the CCRs.

NOVC Board of Directors should not be allowed to accumulate RSU and rights to NOVC common shares without even having to compete on the share price in the open market. The naked short sellers are left to have their way days-on-end, and the more they have success, the more common shares are awarded to directors for attending meetings. This should not be permitted to happen again this year 2019. NOVC should not have any board member that does not have a substantial investment per Sarbanes Oxley requirements. NOVC shareholders should not have to compensate Board of Directors cash salaries or RSU/common shares at any price as they should be solely motivated by their own personal shareholder stake in Novation Companies, Inc. NOVC.

This needs immediate corrective action and all NOVC shareholders should force NOVC Board of Directors including the 3 that have not invested one dollar in NOVC common stock to do what is right.

Regards,




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Msg # Subject Author Recs Date Posted
148555 Re: 9001 shares bankbuyer 0 9/7/2019 10:17:43 AM


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