Image Chain Group Ltd Inc (ICGL)

[sidedraft]

Sometimes a broker get it wrong, as in the exchange I had with a broker today:

--- Original Message ---
From: xxxxxx
Received: 8/16/17 3:12:52 PM CDT
To: <[e-mail]>
Subject: WebsiteBrokerage/ContactUsTradingInquiries

On 8/8/2017 I was charged a $20 reorg fee for ICGL/ICGLD. I see where the number of shares transferred out is correct, one share. But there is no number of shares mentioned in the shares transferred in message.

So, do I get one share of ICGLD or not? Or was I charged $20 for removing my one share?



--- Support Message ---
Reply Date: 8/16/2017 3:31:18 PM
Subject: RE: WebsiteBrokerage/ContactUsTradingInquiries

Dear xxxxxx:

Thank you for reaching out to us with your question. After review the shares of ICGL had a mandatory 1-100 reverse split. In this case you would have received a cash in leau of the fractional share. Unfortunately ICGLD is not trading at this time so there was no cash value to be received by your account.

Per our commission and fee schedule, your account was charged a $20 mandatory reorganization fee. This is a flat service fee for the processing of the corporate action and the actual value of the underlying security involved is not a factor.


--- Original Message ---
From:xxxxxxxxx
Received: 8/16/17 4:28:15 PM CDT
To: <[e-mail]>
Subject: RE: WebsiteBrokerage/ContactUsTradingInquiries

Where did Scottrade get the idea that I should get cash?
What is supposed to happen is noted here:

1. To effect a reverse stock split on a 1 for 100 stock split basis from 400,000,000 authorized shares with a par value of $0.001 per share to 4,000,000 authorized shares with a par value of $0.001. All fractional shares will be rounded up to the next whole share.

https://www.sec.gov/Archives/edgar/data/1598924/000149315217007122/def14c.htm

So the rules of the game are set forth in the DEF 14C, nowhere does it say if it is not trading, I get nothing.

Instead it says, "All fractional shares will be rounded up to the next whole share. "

What say you?




--- Support Message ---
Reply Date: 8/16/2017 4:52:56 PM
Subject: RE: WebsiteBrokerage/ContactUsTradingInquiries
Dear xxxxxxxxx.:

After further review I would like to apologize for the erroneous reply. While in most situations you would receive a cash in leau payment for fractional shares after a reverse split you are correct that for this position you will receive a rounded up share of ICGLD.

This share has to under go a DTC (Depository Trust Company) transfer before it is received in your account. This typically takes 2 - 4 weeks from the time of the initial reorganization.

There is not a date set for the completion of this transfer at this time. No action is required on your part to receive this share and you can expect the transfer to be completed in good order.