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Post# of 15247
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jimmenknee

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jimmenknee

Re: J.C.N. post# 6292

Friday, 01/18/2008 1:18:39 AM

Friday, January 18, 2008 1:18:39 AM

Post# of 15247
brentjanice :) FWIW, I believe there is/was a misunderstanding of the new 144 rules...


Posted by: jimmenknee
In reply to: CBGB who wrote msg# 164283 Date:1/17/2008 6:15:51 PM
Post #of 164319

CBGB :) There is an unfortunate misinterpretation going around relating to the new 144 rules. It originated on the AURC board as a misinterpreted discussion with a TA representative.

The change to the rules as it relates to "non restricted stock" was summed up in the TA's information sheet:

"Changes to Shells for Issuance of Non Restricted Stock ...
Whether reporting or non-reporting issuers are defined as shell or blank check, they are barred from issuing free trading stock and shares in such companies cannot be made free trading until 1 year has elapsed from the time of filing their first form 10."

http://www.transferonline.com/system/forms/Notice_of_Changes_to_rule_144.pdf

The actual rule application starts on page 45 of the SEC document beginning with number "6. Treatment of Securities Issued by "Reporting and Non-Reporting Shell Companies""

http://www.sec.gov/rules/final/2007/33-8869.pdf

I think you will see that there is no blanket restriction of "unrestricted" shares issued by non-reporters for 1 year.

IMO, the bulk of the modifications to the rules that will affect retail traders are as they relate to "restricted" shares.

http://www.sec.gov/investor/pubs/rule144.htm

The table on page 21 of the SEC document outlines the changes. If you notice, they have decided to split the 144 requirements between company categories-- as reporters or non-reporters. The non-reporter requirements, in essence, are not changed from previous requirements in the former rule 144 version which applied to both categories.

http://www.sec.gov/rules/final/2007/33-8869.pdf

So I think it's pretty clear, as it relates to that post, companies who are not identified as either "shell" or "blank check" companies who sell/give out shares outside the scope of restricted shares are not affected by the new 144 rules.

http://investorshub.advfn.com/boards/read_msg.asp?message_id=26086960




How many legs does a dog have if you call the tail a leg? Four; calling a tail a leg doesn't make it a leg.
Abraham Lincoln

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