Drone Services USA Inc. (DSUS)

[Cassandra]

DSUS pre-split shares: The transfer agent needs to issue the replacement shares. Shares held in street name (Cede & Co) are on deposit at the DTC. The TA needs to coordinate with the DTC to reconcile the old street name shares and issue new shares at the ratio of 1 new share for every 260 PVEC shares owned prior to the reverse split. If a company's stock is DWAC eligibile (also called DTC eligible) this can be done electronically, otherwise paper certificates need to be issued.

It is my understanding that DSUSA's TA (Olde Monmouth Stock Transfer Co.) has not yet coordinated with the DTC and that the DTC's records still reflect the old corporate name and CUSIP number. I spoke with a man from Olde Monmouth last week and he told me that the no action was needed by the TA to process the reverse split but that they would issue replacement shares to brokers who return the pre-split shares.

Brokerages that don't deposit the stock of their clients at the DTC may already have exchanged the pre-split shares for the new ones so their clients are able to sell their old shares. However the majority of mainline brokerages use the DTC for deposit, including ETrade.

When the DTC processes changes in ticker symbol, name or CUSIP number for an OTC issuers, the additions and deletions are shown included on a daily list. This is today's list:
http://www.dtcc.com/~/media/Files/pdf/2015/6/1/OTC-103.pdf

Has the DTC shown the deletion of the PVEC/PVECD symbol with its old CUSIP number and added the DSUS symbol with the new CUSIP number and corporate name? If not, the brokers are not at fault. It's likely that Olde Monmouth has not yet exchanged the old shares deposited at the DTC with the new shares.

A representative of Olde Monmouth with whom I spoke last week told me that the TA is not required to do anything in the processing of a reverse split. He seemed to indicate that it was voluntary for new shares to be issued to replace the pre-split shares. I told him that his explanation was contrary to my understanding so we left it at that.

Additionally he told me that Olde Monmouth provides services only for common stock and is not involved in any of the preferred stock.