Excellent News with more Good News
ON the way IMO. Good job PAVC
Dallastx
A nice read:
August 10, 2006 5:30 PM -- InfinitiStocks.com -- Paivis Corp (OTC: PAVC.OB) spoke with us this week in an effort to address the many questions shareholders have asked of late. We present this helpful information concerning delivery of overdue JPHC merger shares, "rounded up" gift shares, and other relevant company activities.
The Most Shorted Stock In The OTC?*
Paivis first came to forefront of OTC gossip when delivery of new shares issued in a merger between Jupiter Holding Corp (JPHC) and APOA Health (APOA), somehow went awry. The terms of the merger call for each JPHC and APOA shareholder to receive 144 restricted stock in Paivis Corp (the surviving entity) per the valuation described by the merger agreement. In total, approximately 5 billion shares were to be issued. But problems arose when online broker TDAmeritrade issued billions of merger shares - not marked as restricted - to their own customers, before Paivis and the DTC had allocated any certificates. The result was a massive sell-off of "phantom merger shares" that apparently transferred an (allegedly) enormous pre-existing JPHC short position into the relatively tiny PAVC float. Possibly because the company specified a physical certificate exchange, PAVC has experienced wild price increases up to 25,000% since May 2006. In our opinion, Paivis is a prime candidate for the short squeeze of the year.
"Where's My Stock?"
This week we spoke with Glen Lidell at Paivis Shareholder Services. We discussed the delivery of restricted merger stock certificates, and also the gift shares issued August 7 for both free trading and restricted PAVC common stock. Following are his answers to the many questions posed by readers these past months.
Restricted Merger Shares
Those who have waited almost 4 months for certificates should not have to wait much longer. Mr. Lidell stated that currently, "most of the large online brokers" have fully complied with the company's request for detailed account information on former JPHC shareholders. While Paivis is still waiting for information from some of the smaller brokers, Lidell told InfinitiStocks that the mailing of restricted stock certificates is "happening now." He added that some shareholders should already have received them. With so many certificates to be mailed, Lidell indicated the task is a daunting one, but added, "we're working our way through it."
Among those awaiting restricted merger shares, there were incidental reports last week of symbols changing back to JPHC in some online brokerage accounts. Lidell assured InfinitiStocks that he was unaware of this, and it likely meant some online brokers were a bit confused following the reverse split. For a situation that is already completely confusing, that doesn't surprise us. But we prompted Lidell further, and he assured us Paivis is still following the original merger agreement outlined months ago.
Reverse Split "Gift" Shares
The unusual terms of the recent 1:200 reverse split include a share "roundup." As a reward to long-time shareholders, Paivis is handing out free stock -- so that anyone holding less than 100 shares after the split will now have a minimum of 100 shares. Of course, a reverse split of this magnitude concerned us, but Lidell explained that it was planned months ago as a way to "adjust the share price to a level suitable for listing on a larger exchange." He also pointed out that unlike typical OTC "share reductions," this reverse split reduced the company's authorized capital in direct proportion to the reduction of common shares. Compared to pre-split levels, it does not afford Paivis the opportunity to further dilute the stock. When we questioned Lidell on the estimated number of additional gift shares, he stated he did not have an accurate figure, but that they would be issued from the current authorized capital. He humorously commented on the swiftness with which savvy retail investors found and acted on the notification of the split hours before the close. On exactly how many traders took advantage of the offer -- buying 100 or 200 pre-split shares for just a few cents -- Lidell stated he did not know at this time.
There has been some confusion as to whether the gift shares are to be restricted, and/or mailed to directly to shareholders. Lidell made it quite clear that the gift shares issued to free trading PAVC shareholders are not restricted, and will be credited to shareholder's brokerage accounts as soon as they are issued. He said rumors of a two to six week wait are greatly exaggerated. The transfer agent has already issued some of the round-up shares, and customers of online brokers holding stock in street name should see the new shares appear in their accounts "very soon." For restricted stockholders, the round-up shares will be mailed directly to their homes, and will likewise carry the 144 (restricted) designation.
Paivis: Passing The Muster
Initially, we wondered at this modest OTC company's ability to cope with the magnitude of the situation at hand. To deal firmly with those engaged in illegally shorting the stock on such a massive scale, and to simultaneously honor promises made to shareholders, is enough to unnerve even the largest of blue chip companies. However, Paivis appears to be handling the situation quite effectively, but admittedly not as quickly as some would prefer. In speaking with Mr. Lidell, we had the distinct impression that while the situation was formidable, it was well under control. We also took the opportunity to press him for details of the upcoming Paivis 10-QSB (quarterly financial report), due out around August 15th. Lidell declined to comment, but assured us that, too, was right on schedule -- and would contain much new information on current and planned business activities.
Nice work, Paivis.
