DD Support Board and Research Team

[janice shell]

The "new rules" referred to are, as the author says, rule imposed by Alpine. When I think of "rules" or "regulations", I think of those imposed by regulators.

Alpine joined the likes of COR Clearing to impose new rules that all but kills the toxic note industry. In short the new rules as we see them is no note conversion deposits will be accepted for issues that trade below $0.01 per share, and may not exceed 20% of the previous 20-day volume average in the stock in question.

Perhaps that is true. As I said earlier, I've also heard Alpine won't be clearing sub-pennies anymore. But there's nothing about it at Alpine's website:

https://www.alpine-securities.com/issuer-services/

COR is still clearing penny stocks, but it evidently now wants very specific language used in the tradability opinions submitted to it.

Longer-term though this could be a real death nail for some smaller micro cap issues as this will all but dry up emergency funding sources for this sector, and could mean a total revamp of how these small stocks fund themselves.

Did he mean "death knell"? Sure, if the toxic funders just throw up their hands and walk away. But they won't do that; there's way too much money in all this. They'll come up with a new angle. And the companies will be relieved. They don't just need money on an "emergency" basis; they need money all the time.

And in the shorter term, the companies could simply reverse split their stock to get it above $0.01.