Here's a little exerpt from our CFO:
>>>>The offering is not for investors to flip and make quick buy and sale however, and because we are a higher risk entity at this price ( with sucha low trading price) we decided to offer the buyer a discount against the current trading price as an incentive to invest ( with greater risk comes the potential of a greater reward). Over the past week or so, during the trading day, our stock has occasionally narrowed down to a bid of $0.0003 vs the offering price of $ 0.00024, so the margin is quite small. Here’s the additional risk – subpenny stock purchased directly from a company may be extremely difficult to clear and sell. Certainly, one can go online and buy/sell stock through a retail brokerage house ( such as the “TDAmeritrade’s” of the world) because the trade is strictly between a “street” buyer and a ” street” seller). Buying directly from a company means entering into a discreet Share Subscription Agreement and accepting a physical stock certificate ( or being recorded by the stock transfer agent as a “shareholder of record”). But if you then try to sell that subpenny stock it is almost impossible to find a broker who will handle the transaction. Retail brokerage house will not touch it – not because there is anything inherently wrong but because the costs involved in the brokerage house contacting the stock transfer agent to verify the authenticity of the stock , obtaining a legal opinion and handling all of the paperwork involved far outweighs any commission they might earn on the deal. So the risk to the buyer of buying stock directly from a company is that, at best, it will be difficult and costly to dispose of that stock and at worse it may not be possible to find a brokerage house that will handle the transaction. Accordingly, a discount on the purchase price to the investor becomes necessary to close the sale of the stock being offered directly by the company<<<<
Kind regards,
Alan Bailey
CFO
Tri Cascade Inc./SRMX
M: (310)722-6624
