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I tend to think this statement makes no logical sense. How can stockholders(equity holders) in a company lose their equity stake in a company just because of a revocation? Maybe the stock is worthless, yes, but that person who is the holder of stock still holds whatever stake in the company.
If what you are saying is true, then if all the stockholders lose their stake in a company that is revoked, and becomes private, then who owns that private company? Like I said, that part of what you said makes no logical sense. A company can not just exist without an owner of stock or eqity in some way shape or form. A corporation is its own entity but there is always equity owners of that corporation if it is for profit. So, maybe the stock is not worth anything but it does not change that the stock holder of record when it is revoked would still own that share of the equity in the company as a private company based on the share structure of the company when it was revoked. Do not see any way around this outside of a bankruptcy Renee. That is what courts and bankruptcies are for in the situation....to protect stealing of eqity from shareholders without oversight.
So, if I am wrong, then maybe you can explain to me better what you are saying?
Renee;
Thanks for your unbiased answers!
Cheers!
SSOB
I know noting about KADR stock other than the Suspension and the imminent revocation that will occur. If there is a large debt tied to the equity the debt holders will have to pursue the company and any signatory by other means because the stock is no longer viable and will soon have zero value upon revocation.
The KADR Suspension ended at midnight, October 1st and was reinstated for trading on the Grey Market for October 2nd. Because KADR is facing imminent stock revocation Brokers are extremely reluctant to allow any opening positions, ie., buy orders, but the stock may trade at their discretion if there was a need to settle a trade before the suspension occurred.
And, being on the Grey Market any formerly suspended stock can be manipulated by any shareholder or other entity who may want to place a small cross-trade to make it appear there is interest in the stock, wherein they can then dump a larger position to anyone gullible to buy their shares.
Bad things can and do happen on the unregulated Grey Market.
There was a trade today. how did that happen?
Renee,
What do you think will happened to Comerica, Jana, & Vicis's $30 million plus debt?
thanks in advance?
SSOB
Upon SEC A.L.J. ruling all registrations are revoked and no previously authorized classes can be effected.
What about the 100,000,000 shelf registration of stocks that have not been issued and the 5,000,000 authorized preferred stock but not issued yet? Are these cancelled as well?
KADR: SEC Admin Law Judge notice re the Admin Proceeding:
http://www.sec.gov/alj/aljorders/2014/ap-1882.pdf
Yes, shareholders still retain their exact share holdings as a number entry in their Brokerage accounts, just not entered as a ticker. Should KADR re-register the number entry in your Brokerage account would change back to a ticker entry, but the shares would still show zero value until FINRA approves a Form 211 for the stock to obtain a Market Maker sponsor to begin trading the stock.
Just on memory the one revoked stock that did get re-registered and obtained a Market Maker sponsor took about two years. It is a very long, tedious process where the SEC vets every syllable and every entry in any FORM 10 re-registration application.
Ok but in the scenario where they re register the shares can old shareholders get shares in the new company via a stock transfer if the new company chooses to provide that offering?
It can happen within days if the company agrees to not oppose revocation by Settlement, which means they can thereafter file a Form 10 to try to re-register their stock, or it can take weeks to months if the SEC needs to revoke the stock by DEFAULT, which means the company would never get their stock re-registered.
Whenever revocation happens, and it WILL happen, the stock can no longer trade and the value of shares instantly goes to zero.
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=KADR
SEC Orders Hearings On Registration Suspension Or Revocation Against Arcadia Resources, Inc. For Failure To Make Required Periodic Filings
Sep 18 14
Securities and Exchange Commission (SEC or the commission) instituted public administrative proceeding to determine whether to revoke or suspend for a period not exceeding twelve months the registration of each class of the securities of Arcadia Resources, Inc. for failure to make required periodic filings with the Commission. In this Order, the Division of Enforcement (Division) alleges that the company was delinquent in its required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the company to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 there under, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of the company should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceeding.
How long after suspension do they revocations usually take place? 120 days? Or does it depend?
The important lesson is to differentiate between SEC Registrant Filers and stocks that have no stock registration(s) and trade on the OTC Markets, a.k.a. Pink Sheets.
The first due diligence is to access EDGAR to research. If the stock isn't listed then it is a stock that does not report to the SEC and could not be Suspended for being delinquent in filing periodic reports to the non-regulatory OTC Markets. Of course, a non-reporting stock can still be Suspended for alleged frauds, but not for Financials delinquencies.
Here is a list of delinquent SEC filers also at risk of an SEC Suspension and imminent revocation. Use the EDGAR link included in the post to see if a stock is an SEC Registrant Filer, and do not buy that stock if it is delinquent more than one year.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=105890470
Yeah not too optimistic anymore
You're welcome.
No....the revoked stock could not be transferred. Only an accepted, NEW registration would benefit shareholders, but as I wrote in a previous post only one revoked stock out of 1127 revoked stocks in the last 4 3/4 years has been successful at re-registration.
Essentially a stock revocation instantly makes the company a private company. They could merge with any other private company, but if they tried to merge with a public company they could not use any of their revoked equity.
I.O.W., upon stock revocation shareholders lose their entire equity value so it shouldn't matter to shareholders what the company does after stock revocation because former shareholders will not benefit.
And if they did a stock transfer for the new shares
You guys are talking about the registrant as it exists today but if they reversed merged with a private company would the same rules apply? Like they did in 2004
Nope....the SEC would demand full auditing back to their last 10K.
FWIW, only one stock out of 1127 were successful at getting a new registration after being revoked. Companies that say they will usually give up after the SEC requires infinitesimal details of everything....details the companies just can't or won't provide.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104935976
So just one year rather than multiple years of ago will do if filing form 10 I asssume?
No, any new Form 10 would need to have complete audits from the last audited 10K. No company gets off the hook if they do file a new Form 10.
LLEG and PELE tried after their stocks were revoked and their Form 10's were incomplete and consequently denied.
Filing form 10 to bypass going through years of audit?
IPO$, due to the SEC Suspension for Financials delinquencies the stock will be revoked no matter what KADR attempts to do. They have a choice to accept an SEC Settlement to not oppose stock revocation whereby they could file a new Form 10 for a new stock registration, OR the company can ignore the SEC Admin Proceeding and the Admin Law Judge will revoke the stock by DEFAULT, where the company would never be approved for a new Form 10 for new stock registration.
Yes, if the company has any intentions to be a public stock it is absolutely best to agree to an SEC Settlement to not oppose revocation. Then the company can file a new Form 10 for a new stock registration.
In some cases, its better to accept the revocation and wait while things work itself behind scenes impo
Hi Renee. What is the penalty rule on 3 late SEC filings in a 12 or a 24 month period? No S-1's allowed is the penalty?
Investor2004: When the SEC suspends a stock for delinquent Financials there is a 100% surety that the SEC Admin Law Judge will revoke the stock registration and Brokers do not want to process new buy orders where they would not be able to complete the settlement process. Brokers cannot deny sell orders since they allowed the original purchase orders but they protect themselves and their clients by not allowing any new buy orders, unless those buy orders are in-house from client to client where settlement would not be a problem WHEN the stock registration is revoked.
You may refer to the following post, particularly the second segment under Suspended SEC Filers Sent to the Grey Sheets and then revoked:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104935976
The grays have no bid or ask. you throw out a price and if someone else is good with it the transaction occurs. It is up to the individual brokerage as to if they are willing to transact. It is a true supply and demand. As I understand it, there is no shorting.
Have you ever bought or sold on greys Gotin? Can a standard brokerage do a trade? I talked to TD Ameritrade and when I said grays to an advanced broker...you would have thought I was speaking a different language! Any help if you have traded this level before would be appreciated. Thanks.
Should be trading on the greys tomorrow
Wow that's just cold
Kinda like your wife in a nasty divorce selling off your prized 1961 corvette for 100 bucks on craigslist while you are not around...LOL
Yes, when asset pieces are sold off of a business and not the whole enchalada, this can be done under a standard public corporation by the executives and BOD without any control of the shareholders. IE, downsizing...etc...they, in a way, just did that on a much bigger scale I suppose and sold everything piece by piece.
I am optimistic but that's just me.
Saw something about WAG's new holding company to be incorporated in Delaware and headquartered to remain in Chicago. Interesting
So u r still optimistic then?
Not sure about the dismantling part. I would think shareholders need be at least notify. If I'm understanding correctly, spin offs, mergers, and acquisitions do not need all shareholder votes in Nevada.
U r right. I just looked it up
Shareholder vote not required when dismantling the business?
I think b/c Arcadia Resources was incorporated in Nevada and under that state rules, shareholders vote us not required in most cases impo.
What I want to know is did anyone ever figure out why there was no shareholder vote for any of this stuff?
Never good to be on the grey market. Just trying to find some good outcomes as well.
With regards to dailymed... If they own the member interests then they get to keep all the profit dailymed makes. If they reversed merge the new company would get all the dailymed profit it addition to the debt which could be converted to equity as well. Also the shares.
Ok, thanks for that info Sticky. So do you think then this development if it ends up on the greymarket is good or bad considering the overall situation? If in fact as you said the member intrests are still held, what would it mean then if Dailymed really took off in a big way in your opinion?
Good shieat! Sticky.
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