Black Dragon Resource Companies Inc (BDGR)

[marsnvest]

When you acquire restricted securities or hold control securities, you must find an exemption from the SEC's registration requirements to sell them in the marketplace. Rule 144 allows public resale of restricted and control securities if a number of conditions are met. This overview tells you what you need to know about selling your restricted or control securities. It also describes how to have a restrictive legend removed.

What Are Restricted and Control Securities?
Restricted securities are securities acquired in unregistered, private sales from the issuer or from an affiliate of the issuer. Investors typically receive restricted securities through private placement offerings, Regulation D offerings, employee stock benefit plans, as compensation for professional services, or in exchange for providing "seed money" or start-up capital to the company.


Kenco, this is published from the SEC. I believe the confusion is in the timeline of the creation of a security. I agree restricted securities can become registered but the problem here is the actual birth of the security before it gets registered. As always, subject to legal interpretation, and I am not a securities expert but I do not think I am off on this.