Discovery Minerals LTD (DSCR)

[Ryan8]

Discovery Minerals Shell Risk and Expert Market Delisting

What does it mean & why Discovery minerals will never be current.

More than 2,000 Publicly Traded Companies Shifted to OTC’s Expert Market as Amended Rule 15c2-11 Goes into Effect

The SEC and OTC Markets Group follow through on prohibiting brokerage firms from quoting prices for OTC stocks for which brokers don’t have current, and thus reliable, financial information.

On September 28, 2021, more than 2,000 publicly traded companies whose shares had been quoted on OTC Markets Group’s Pink Open Market were shifted to OTC Markets’ limited “Expert Market,” where stocks are essentially suspended from official trading, for failure to make current information about the company publicly available.

This action is the result of the SEC’s position that enhanced disclosure and investor protection are needed in the over-the-counter (OTC) markets, as reflected in the September 2020 amendment to Securities Exchange Act Rule 15c2-11.

This rule prohibits dealers from publishing quotations for OTC securities to quotation mediums without first reviewing certain issuer financial information and ensuring that information is current and publicly available.

Under amended Rule 15c2-11, current information about an issuer must be publicly available in order for an issuer’s shares to become quoted initially, and remain quoted, on one of the three main public marketplaces (OTCQX Best Market, OTCQB Venture Market and Pink Open Market) operated by OTC Markets Group.

According to guidance from OTC Markets Group, issuers subject to SEC reporting obligations satisfy the requirements of the amended rule if the issuers are current in their SEC reporting obligations. Non-SEC reporting companies would have to satisfy OTC Markets Group’s basic disclosure guidelines and post their company’s financial statements on the OTC Disclosure and News Service.

Issuers who miss, are late or choose not to comply with periodic (annual and quarterly) filing requirements should be aware that their shares could be involuntarily shifted to OTC Markets Group’s limited Expert Market after a short grace period.

The Expert Market is available only for unsolicited quotes, meaning broker-dealers may use the Expert Market to publish unsolicited quotes representing limit orders from retail and institutional investors who are not affiliates or insiders of the issuer. Quotations in Expert Market securities are only made available to broker-dealers, institutions and other sophisticated investors.

As a practical matter, if a company’s common stock is moved to the Expert Market, the company’s stockholders will no longer have a public trading market for their shares. Additionally, trading bid and ask prices and share trading volumes will not be publicly quoted and the trading market for the common stock would likely be illiquid and limited primarily to private purchases and sales among individual stockholders. Any transactions would be opaque to the public marketplace and would not necessarily provide the company’s stockholders with a reliable market value for their shares.

A company pushed down to the Expert Market would be able to apply for relisting on OTC Markets Group once a market maker has filed a new Form 211 with FINRA, and the company has made current public information available.

This requires a company to locate a market maker to file a Form 211 on its behalf and, once the form is filed, there is no set timeframe for a re-application approval. When compliance with the amended rule is demonstrated, relisting can occur.

The impact of amended Rule 15c2-11 is ongoing. More than ever, OTC companies need to complete and file timely and adequate current public information with the SEC or OTC Markets Group. If they fail to do so, they jeopardize the privilege of being publicly traded in a regulated market.

Attention SEC, IRS, Roadmap for Discovery Minerals Investigation:

On May 11, 2021 Discovery Minerals Ltd.(DSCR), a Wyoming Corporation, caused a national press release to be sent. In this press release Discovery Minerals announced the launch of the DSC coin. Source *3

In this release DSCR represented that the DSC coin was "backed" by more than $100,000,000 in assets. Off this representation Discovery Minerals sold between the time of 5/11/2021 and 6/30/2021, $2,538,000 in DSC coins.
Source *1

On August 18, 2021 Discovery Minerals Ltd. filed a report with OTC markets for period ending June 30, 2021. In this report Discovery Minerals, Ltd., omitted all mention of DSC Coin or the revenue it derived from its sales, including;

1. Page 12. No Revenue - Discovery Minerals, Ltd. reported 0 revenue, analysis of whether the DSC coin sales where accounted for are obvious;

2. Page 16. Revenue Recognition- Criteria of booking the DSC coin sales would qualify;

3. Page 22. Subsequent Events - Management makes a conscious decision to omit in its entirety the DSC Coin sale from OTC mandatory report.
Source *4

On or about August 15, 2021 the management took down the website (evidence of wrong doing) at https://discoverymineralscoin.com, This site was mentioned in the May 11, 2021 Discovery Minerals, Ltd., press release in
Source*3.

A web archive of the discovery mineral coin website for the May 17, 2021 is available at
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/
Source *2a

On or about September 28, 2021 Discovery Minerals was relegated to the expert market. This OTC tier demotion caused an immediate 90%+ decline in the share price.

On October 10, 2021 in the Investors Hub message board for Discovery Minerals Ltd at
https://investorshub.advfn.com/Discovery-Minerals-Ltd-7600

A message board poster by the alias of Frez posted a communication that management sent to him in a private nonpublic communication referenced on Discovery Minerals Ltd., Investorshub message board Post 105320 https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768
Source *5

"...Hello,

Due to the high volume of emails, we will be having longer than normal response times. We apologize for the inconvenience but we are grateful for your support and patience.

DSCR is committed to transparency, and we are working tirelessly to ensure we have everything up to date on our website, social media and investor relations.

If you have questions about the coin, we will be issuing refunds. Please send a copy of receipts or purchasing agreements to us via email. Please allow 7 days for a response

If you are inquiring about verified pink status on OTC, please know we have submitted all necessary paperwork and are awaiting updates as well.

If you are inquiring about The Ruby Mine or our JV, please know we have more details to be released in the next few weeks.

Thank you for your support. We appreciate all of our shareholders.

Best,DSCR Team..."
Source *5
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

Summary

In this non-public communication management of Discovery Minerals sealed their fate by referencing the coin in the only communication since May 11, 2021 Source *3 when they sold $2,538,000 worth of DSC Coins and forgot to disclose it anywhere else.
Source *2
Source *2a
Source *3

"...If you have questions about the coin, we will be issuing refunds. Please send a copy of receipts or purchasing agreements to us via email. Please allow 7 days for a response..."
Source *5
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

So why would management of Discovery Minerals Ltd., consciously conceal the DSC Coin sale?

On May 11, 2021 in a press release Discovery Minerals stated that the DSC Coin was BACKED, by 2,100 Ethereum, 2,100 Bitcoin, 2,100 ounces of Silver, and 2,100 ounces of Gold. Off this materail misrepresentation of assets backing the Discovery Minerals Coin, management sold $2,538,000 worth of DSC Coin.
Source *3
https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html


Discovery Minerals has 0 revenue and only $238,000 in assets.
Source *4
https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

This material misrepresentation of more than $100,000,000 in assets backing the DSC Coin allowed management of Discovery Minerals Ltd., the ability to sell $2,538,000 in DSC Coins between the period of May 11, 2021 and June 30, 2021.
Source *4
https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

Archive of the Discoverymineralscoin.com site that management of DSCR concsioulsy took down
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/
Source *2a

* Sources

Source *1. DSC Coin Sales Etherscan
https://etherscan.io/token/0xf4a9b9311d5167dc36e6b39f5c0baaa60bbcbbc1 ;

Source *2. Discovery Minerals, LTD. destroyed evidence of this by purposley taking down the website https://discoverymineralscoin.com website that sold $2,538,000 in DSC Coin.

Source *2a. Archive of the Discoverymineralscoin.com site that management of DSCR purposley took down to conceal the slaes of $2,538,000
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/ ;

Source *3. Press Release 5/11/2021 on DSC Coin
https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html ;

Source *4. Filed OTC Report for Discovery Minerals Ltd. for period ending June 30, 2021, filed on August 16, 2021.
https://www.otcmarkets.com/otcapi/company/financial-report/296352/content .

Source *5 Investors Hub Post #105320 dated October 8, 2021 by Frez - communicating "Coin Refund" to a select group of shareholders, via Discovery Management violaton of Regulation FD
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768