There really is a good side for the investor regarding a DTC Chill. The company is not allowed to introduce any new shares into the market when under a chill. This has nothing to do with the shares you currently hold. What it does is prevent those new authorized shares from coming into play. This means the float will be quite low when your shares are released. For an example of this fact, look at NXHD. They have been under a "CHILL" by the DTC for a long time now. Their float is very low something like 17 million, but their authorized shares are 100 Billion. They just can't put them into play.
This favors the investor, but the investor will not know when the shares are going to be released. However, neither does the company. As far as the current hold-up of our shares, they will be released less than 2 months after the R/S date. I learned this from another recent R/S and "long-term" kind of hold up on my shares. Realistically, this is a win / win for the investor.
CBAI is the one that wasn't counting on this or just didn't understand what a "chill" means to them as a company. Dilution by introducing new shares into the market is impossible at this time. Once your shares are released, and they will be within 2 months, you will have a much smaller float to contend with than anticipated.
Regarding the DTCC ineligible issue, this is a BIG ISSUE and much bigger than a chill, IMO. At this time, for stocks that are added to this list it means to trade them with "some" brokers can and will cost between $200 - $700 per trade. For many, this renders their investment worthless unless something magnificent takes place to surge the PPS up...WAY UP!
Of course, this is my opinion, but based on factual occurrences over the past few months. Regarding the DTCC ineligible issue this is an absolute fact if your broker happens to be Zecco, for one.
Speaking the truth in times of universal deceit is a revolutionary act. ~ George Orwell
AI
