Pardon my naivety, but as the issuer of the shares, should you not be able to provide the DTC with the warranty they require as to the validity of the shares being sold on the market? Or barring that, at the very least provide them with the information they require to determine the validity of the shares in question?
Thank you for taking the time to share your question. Yes, as you say, we certainly can provide the information, and are willing to do so. However, the DTC does not want to put itself into the position of making individual determinations. It would like its members, the broker/dealers, to do so, in the form of a warranty. This is not as onerous as it sounds, the “warranty”, but it still does require the broker/dealers who participate in the warranty to stick their necks out. This is because they deal with so many transactions that it is easier to simply exclude non-standard issues, rather than to involve themselves in due diligence, especially if they are being held responsible.
For comparison, it would be roughly like a real estate agent being asked by the Consumer Protection Agency to warranty that there was never asbestos in the house they are selling on behalf of a homeowner. The real estate agent may be willing to, but would rather have the seller provide the warranty. Unfortunately, the DTC in this case is saying it would prefer that the agent does so. Metaphors have their shortcomings, but this one is fairly accurate I believe.
Rgds,
Eric Lehner, CEO
WINNING BRANDS CORPORATION
(705) 737- 4062 Extension 101
www.WinningBrands.com
www.1000Plus.ca
Market Data 
Markets 
AI
