GLUV Corp (fka GVRP)

[MONEYMADE]

Before the Ink Dried: The Chaos and Confusion Stemming From GLUV Corporation



GLUV Corporation (OTC: GVRP) acknowledged that 3 million shares of the company's common stock were issued prior to the dividend payment date. According to the company, it appears that an unknown number of those shares have been improperly traded in the marketplace throughout the last week or so. Recently, the Board of Directors of GLUV Corporation had voted that each shareholder holding shares on May 13, 2005, was entitled to a dividend of common shares at a ratio of 3 million shares for every 1 common share held on that date.



The confusion began as the company believes that at least 3 million of such shares appear to have been distributed prior to the payment date. The company is investigating the reasons behind the distribution of these shares and has even called the Securities and Exchange Commission to seek out a halt of the company’s shares. This is in connection to a major problem when the Pink Sheets Electronic Quotation System showed that the outstanding common stock of GLUV Corporation might be as high as 99 trillion shares. Believing that the Pink Sheets service was in error, the company claims that only 11 shares were “outstanding prior to the declaration of the dividend with the 3 million share dividend attached to them,” rather than the Pink Sheets service that reflected 33 million shares of the company’s stock with the three million share dividend attached to each of those shares.



Finally, on Friday, May 27, 2005, the SEC imposed a trading suspension for GVRP stock. In their trading suspension notice, the SEC cited that among other things, “the Commission temporarily suspended trading in the securities of GLUV because of questions that have been raised about the accuracy and adequacy of publicly disseminated information.” This includes the number of shares outstanding for the company, the availability of non-restricted shares for trading and delivery, the current shareholders of the company and the rights attached to ownership of these shares.



Robert W. Pearce, the company's chief executive officer, stated that he is “very grateful to the SEC for having acted so quickly in response to our request for help. The confusion about the actual number of the company's shares that are publicly available for trading appears to have caused some investors and various members of the brokerage community to be maintaining positions in our stock that are far in excess of the actual number of shares that we have outstanding. It is our hope that the SEC will ultimately resolve this problem by fashioning a solution that will permit the brokerage community to reverse the trades that should not have occurred in our stock during the past week."



As the SEC continues to monitor the situation, shareholders can only hope that trading will return to normal as soon as possible.


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