Compensated Awareness Post View
Disclaimer
Regarding some of the postings, this is what CBAI said in its SEC filing and this is what it stands by:
"In December, 2010, the DTC unilaterally and without consultation with the Company, "chilled" all newly issued shares of the Company which were entitled to be freely traded in the market and whose holders expected to utilize the DTC Electronic Trading System. Under what the DTC calls a "chill", DTC precludes shares which it has unilaterally "chilled" from utilizing its Electronic Stock Transfer System, thereby putting the holders of such "chilled shares" at extreme disadvantage in the trading market when they go to sell their shares. The "chill" applies to all shares newly issued after the "chill" went into effect on December 14, 2010, as well as all shares newly freed from private placement sales restrictions after the "chill" went into effect. The chill includes as to the Company, even shares for which an effective registration statement is in place, and shares for which valid legal opinions have been issued by seasoned securities law counsel opining as to share entitlement to free trading status under SEC Rule 144. The SEC File Number of the aforementioned registration statement, a Form S-1 filing, is 333-164844, which said registration statement was declared effective by the SEC on May 11, 2010. The "chill" applies to the resale of shares covered by this registration statement. The "chill " fortunately does not apply to existing publicly traded shares of the Company which are out in the market place. The holders of the "chilled" shares of the Company are the key investment bankers whose funds have been supporting CBAI with capital lines to fund its expanding business. The Company has been forced to negotiate settlement agreements with its existing investment bankers to settle alleged breaches of contract as a result of this DTC chill and the unavailability of DTC electronic transfer for chilled Company shares. Such settlement agreements have already cost the Company approximately $885,000 as of June 30, 2011 in damages. The Company is endeavoring to maintain a dialogue with DTC over what the Company considers to be an unreasonable and illegal chill of its securities without cause or justification, in an effort to have this chill lifted. Whether the Company will be successful in obtaining relief from this chill is at this point uncertain. Continued implementation of the DTC chill will make it more difficult and costly for the Company to obtain new capital which its needs to expand its business, and will likely increase claims for contract damages which the Company may have to pay as a result of its inability to deliver shares to investment bankers which are eligible for DTC electronic transfer."
Paul Knopick
pknopick@eandecommunications.com
949.707.5365
