Due to blog reader interest, the SkunK requested an update from GreenShift concerning DTCC concerns. Here is today's response from the GreenShift Legal Department:
***************************Dear Shareholder:
There have been no material developments with respect to the status of the restriction placed on electronic transfers of GreenShift common stock by The Depository Trust & Clearing Corporation ("DTCC").
DTCC previously requested information from GreenShift pertaining to its prior issuance of common shares upon conversion of convertible debentures previously purchased by various investors. GreenShift has provided all of the information requested by DTCC as well as an additional opinion of GreenShift's securities counsel confirming the valid issuance of all common shares upon payment of GreenShift's convertible debentures. DTCC staff has advised GreenShift's counsel that the restriction on electronic transfers of GreenShift common stock was temporary and would be lifted upon receipt and review of requested information. We understand that DTCC is conducting similar reviews of a number of issuers and has not yet completed its review of the information we provided despite GreenShift’s prompt response to their informational request. The latest update received from DTCC is that they continue to work through the issue internally. We are aware of no "new" restrictions.
GreenShift is a fully reporting company in full compliance with all applicable rules and regulations. We are not aware of any basis for DTCC's actions in this regard except for what DTCC staff has termed a routine compliance check. DTCC is not a regulatory or governmental body and has not published any standard or time limit for their ongoing review. We intend to continue to press DTCC for timely completion of its review.
As you may recall, the DTCC restriction extends solely to electronic transfers of GreenShift stock, and not to physical transfers of stock. We understand this distinction to be analogous to restricting deposits of wire transfers but allowing deposits of checks. We understand that the procedure for physical transfers starts with advising your broker to request "X-clearing" when transferring shares.
A number of GreenShift shareholders have reported that some brokerage firms have separately restricted investment activity involving GreenShift common stock. We are not aware of any reason for these actions except to note that transfers of physical stock certificate are both more costly and more time consuming as compared to electronic transfers. The expense and/or the length of time until delivery may be the reason for the actions of such firms. Shareholders encountering this issue are encouraged to contact their broker directly for additional information. Note that some shareholders have recently reported working through this issue by working with one or more different brokerage firms.
Please do not hesitate to contact us at investorrelations@greenshift.
Regards,
GreenShift Corporation
There have been no material developments with respect to the status of the restriction placed on electronic transfers of GreenShift common stock by The Depository Trust & Clearing Corporation ("DTCC").
DTCC previously requested information from GreenShift pertaining to its prior issuance of common shares upon conversion of convertible debentures previously purchased by various investors. GreenShift has provided all of the information requested by DTCC as well as an additional opinion of GreenShift's securities counsel confirming the valid issuance of all common shares upon payment of GreenShift's convertible debentures. DTCC staff has advised GreenShift's counsel that the restriction on electronic transfers of GreenShift common stock was temporary and would be lifted upon receipt and review of requested information. We understand that DTCC is conducting similar reviews of a number of issuers and has not yet completed its review of the information we provided despite GreenShift’s prompt response to their informational request. The latest update received from DTCC is that they continue to work through the issue internally. We are aware of no "new" restrictions.
GreenShift is a fully reporting company in full compliance with all applicable rules and regulations. We are not aware of any basis for DTCC's actions in this regard except for what DTCC staff has termed a routine compliance check. DTCC is not a regulatory or governmental body and has not published any standard or time limit for their ongoing review. We intend to continue to press DTCC for timely completion of its review.
As you may recall, the DTCC restriction extends solely to electronic transfers of GreenShift stock, and not to physical transfers of stock. We understand this distinction to be analogous to restricting deposits of wire transfers but allowing deposits of checks. We understand that the procedure for physical transfers starts with advising your broker to request "X-clearing" when transferring shares.
A number of GreenShift shareholders have reported that some brokerage firms have separately restricted investment activity involving GreenShift common stock. We are not aware of any reason for these actions except to note that transfers of physical stock certificate are both more costly and more time consuming as compared to electronic transfers. The expense and/or the length of time until delivery may be the reason for the actions of such firms. Shareholders encountering this issue are encouraged to contact their broker directly for additional information. Note that some shareholders have recently reported working through this issue by working with one or more different brokerage firms.
Please do not hesitate to contact us at investorrelations@greenshift.
Regards,
GreenShift Corporation
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I would like to thank GreenShift for their timely response,
SkunK
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