Drone Services USA Inc. (DSUS)

[Cassandra]

It would be a legal nightmare!!

Because Peter and his former team choose to distribute this bizarre $4 million Series C "gift" directly to shareholders bypassing the TA and the recipient brokerages, the company would have an additional legal/logistical nightmare of reporting monetary proceeds for each recipient to the IRS and probably sending Form 1099DIV to recipients as well.

Brokers assume responsibility for reporting dividends distributed to shareholders in street name. However if PVEC redeems the Series C shares in cash, the company would bear such responsibility. I'm not sure what would be required if the C shares are redeemed in common stock (which would have to be restricted for 6 to 12 months).

The issue is likely moot. As I've said all along, I do not believe that the Series C shares will prove to have any value. The company doesn't have enough cash to pay its bills and debts let alone to give away $4 million as a gift.

Redemption of 20 million Series C shares in common stock at the current price of $.0001 would require 40,000,000,000 (40 billion) shares to be issued.

Neither redemption option seems likely despite assurances by former PVEC executives/team members Kerry and Jason. It will be interesting to see how Peter intends to redeem this gift (assuming he does so intend) and if he has placed conditions or restrictions not previously announced.

According to the 2/28/24 PR, the Series C certificates were stated to be redeemable starting 9/17/14. Although the company has not publicly announced a change in that date, a couple of cert-holders have posted they received a letter stating that the shares would be redeemable six months from issuance -- presumably the 4/23/14 record date that Peter scheduled and announced through FINRA.

2/28/14 PR:

http://www.otcmarkets.com/stock/PVEC/news/PV-Enterprises-International--Inc--Announces-the-declaration-and-Record-Date-of-a-1-for-175-Preferred-Share-Stock-Distribution-?id=76533&b=y

4/4/14 PR (issued by FINRA at company request):

http://www.otcmarkets.com/stock/PVEC/news/PVEC---announced-a-share-distribution-of-restricted-Preferred-Shares-with-a-record-date-of-4-15-2014--PVEC-will-not-be-quoted-ex-dividend?id=78627&b=y