Response from Greenshift:
Dear Mr. X,
We understand that GreenShift shareholders with brokerage accounts at TD AmeriTrade, Scottrade and USAA have been restricted by each firm from executing investments in GreenShift Corporation common stock. We further understand that the feedback received from at least one of these firms relates to a restriction placed on electronic transfers of GreenShift common stock by The Depository Trust & Clearing Corporation ("DTCC").
DTCC previously requested information from GreenShift pertaining to its prior issuance of common shares upon conversion of convertible debentures previously purchased by various investors. GreenShift has provided all of the information requested by DTCC as well as an additional opinion of GreenShift's securities counsel confirming the valid issuance of all common shares upon payment of GreenShift's convertible debentures. DTCC staff has advised GreenShift's counsel that the restriction on electronic transfers of GreenShift common stock was temporary and would be lifted upon receipt and review of the requested information. As far as we understand, DTCC is conducting similar reviews of a number of issuers and has not yet completed its review of the information we provided despite GreenShift’s prompt response to their informational request.
GreenShift is a fully reporting company in full compliance with all applicable rules and regulations. We are not aware of any basis for DTCC's actions in this regard except for what DTCC staff has termed a routine compliance check. DTCC is not a regulatory or governmental body and has not published any standard or time limit for their ongoing review. We intend to continue to press DTCC for timely completion of its review.
Further, we have been advised by the DTCC that the DTCC restriction extends solely to electronic transfers of GreenShift stock, and not to physical transfers of stock. We understand this distinction to be analogous to restricting deposits of wire transfers but allowing deposits of checks. We further understand that the procedure for physical transfers starts with advising your broker to request "X-clearing" when transferring shares.
Finally, while we are unaware of any reason for the separate actions taken by TD AmeriTrade, Scottrade and USAA, we understand that transfers of physical stock certificates are more costly as compared to the cost of electronic transfers. This expense may be the reason for the actions of such firms. Shareholders encountering this issue are encouraged to contact their broker directly for additional information.
Please do not hesitate to contact us at investorrelations@greenshift.com if we can be of further assistance in resolving this matter.
Regards,
GreenShift Corporation
