SOHM Inc (SHMN)

[SLC-JD]

Just gonna put this out there, as it may inform as to future activity...super (overly) disclosive, but I feel like this may be helpful to folks in my position, and provide transparency to those trading in the float:

As some of you know, I'm holding some restricted shares. As I've further noted previously, my broker-dealer (WDCO) will not clear or trade stocks below $.01. Some folks on this board have indicated that their research did not indicate that this was a widespread stance. As I'm trying to free up some capital, I decided to do a deeper dive today, and wanted to share the results:

I reached out to two other broker-dealers who have typically worked in the pink/sub-penny area (Scottsdale and Glendale). They both clearly articulated that they would not clear or trade sub-penny pinks; Scottsdale replied with the following:

"Unfortunately, we have similar [to WDCO] minimum requirements and we are not opening new accounts for shares that are trading below $.01. If this stock picks up in price and has decent trading volume, we may reconsider in the future.

Thank you for understanding,"

Glendale pointed to language on their website: https://glendalesecurities.com/certificate-deposit-info/)

In essence, due to recent SEC enforcement activities, most historic sub-penny broker-dealers will no longer clear stocks trading below a penny and/or without requisite volume.

This is bad for me and others in a similar position, and may impact folks trading in the float. Long story short, anyone (like me) holding restricted securities will have a difficult, if not impossible, time freeing those shares up to be able to trade. Look at the cap tables, as this will indicate how many "new" shares might enter the float once PPS increases. Unless there are one or more private transactions (I'm open to offers - msg me), holders of issued restricted shares are essentially stuck until PPS rises, at which point they may rapidly come in to play.

For those holding free-trading shares, this is something to consider should the cap tables change. It is highly unlikely that anyone who has previously received or may be receiving (ie consultants, officers, board members, or even secured lenders) restricted shares as compensation for anything (loans, services, etc.) will be able to liquidate those shares until PPS rises and stays above a penny - Don't freak out if you see issued change!

Also, to provide some transparency for those who may question my motives: I absolutely need to see PPS rise up to and above a penny unless someone wants to buy my shares or a magical broker-dealer arrives who isn't afraid of FINRA and will deposit/trade sub-penny securities (and given the time it takes to clear restricted shares, I'll need it to happen on a long-term basis). As such, I'm absolutely not supportive of a short-term pump, and definitely not looking for a short. I'm long with significant holdings, and need to see PPS rise to a sustainable >.01 to be able to trade my position.