Stuck and Screwed!

[BigBake1]

That is correct, regular retail cannot deposit or transfer existing physical certs. They also cannot transfer electronically from broker account to another broker account on these penny stocks.

The only retail allowed to deposit physical certs are those who are financiers or debt holders that show documents of NEW share issuance. It used to be only two such brokers accepted such NEW certs on DTC chilled securities and the haircut made it cost prohibitive to do so, 25-30% of total deposit value was required. Then the cert was held for a 30 day holding period.

Then the NSCC increased their fee to 20% from 10% on all deposits for DTC eligible securities. This caused a vacuum for competitive broker rates for these certs. Now there are several smaller brokers that will take deposit of new certs at lower rates than the NSCC and larger brokers. That is as long as the security in question is not a greysheet or unsolicited quote security, so a valid Form 211 must be on file.