The following is my continued communication with one of my brokers holding some of my SRGE shares (RBC Direct Investing - Canada). Take from it what you will.
Cheers,
-----Original Message----- Sent: 16 Jan 2013 14:28:46 From: XXXXXXXXXXXXXXXXXXXXXXXX To: RBC Direct Investing Subject: RE: Other Inquiries
Hi, I'm wondering if anything has come of the supposed dividend? I noticed OTCBB lists the Ex-Dividend date of Jan. 4, 2013, but I have not seen anything listed with Finra. I am, however, aware of investors around the world, US and British account holders, that have received those dividends, one such brokerage being Fidelity. I am curious if Southrdige has paid the dividend to the Shareholders of Record but those that have been sold short shares from off-shore hedge funds (see S2E2 on the Berlin exchange to understand what I'm talking about here) are waiting for those same short sellers to pay the dividend that by law they have to pay?
Also, I am curious if SRGE were to transfer to another exchange, the BMV (Bolsa Mexicana De Valores) for instance in Polanco, D.F., Mexico, do my shares automatically get changed/transferred, or would I potentially run into problems, if for instance there are Naked Short Shares of 5 times the float? How would the monetary system work? Would it simply be listed in pesos? Can I hold BMV listed shares in my account, and buy and sell them?
Also, what would happen if, for instance, other investors requested share certificates from the TA/DTCC to the point where (if Naked shorted) there were none left available for the shares that I own? Would RBC Direct Investing be forced to cover the short position at the price I request? To eliminate the possibilities of a potential shortage of shares is it possible for me to request my certificates and re-deposit them once SRGE has changed to a new market, considering SRGE has a share exchange agreement?
Please respond to all questions in detail to save on excessive emails.
Thankyou very much. Your responses are very appreciated.
Sincerely,
XXXXXXXXXXXXXXXXXXXX
-----Original Message----- Sent: 18 Jan 2013 16:00:31 From: RBC Direct Investing To: XXXXXXXXXXXXXXXXXX Subject: RE: Other Inquiries
Dear Mr. XXXXXXX,
My name is XXXXXXXXXX and I'll be happy to assist you further with your inquiries regarding Southridge Enterprises.
Due to the character limitations, this message will be sent in two responses. This is the first of two messages.
We are currently investigating the dividend payment for your account XXXXXXXX. At this time, accounts under RBC Direct Investing holding SRGE have yet to receive this particular dividend. Contrary to the previous information you have received, this dividend is considered a special dividend because it doesn't follow the regular ex-dividend, record, and pay dates. In addition, whenever a dividend is declared and the amount of the dividend is greater than 10% of the value of the stock, it is also considered a special dividend. I will respond back once I receive further information with respect to the dividend payout.
Unfortunately we are unable to comment on issues or problems with the company if the listing goes to a foreign market.
If SRGE was to transfer to a foreign exchange (eg. Mexican Exchange), your shares would still stay in your RBC Direct Investing account. Since RBC Direct Investing only participates on the Canadian and US Markets, the shares would no longer show a symbol. For example, if you are holding SRGE on the USD side of your account, it will still be shown on the USD side, however it will be considered a foreign stock. The stock will not be displayed in Pesos but rather in USD, although the underlying stock may in fact be listed in pesos. If this does occur, to sell this stock you would have to call into our centre at 1-800-769-2560 to place the order. Often, if a stock is listed on a foreign stock exchange, it can still be sold on US OTCBB provided it is the same underlying stock. These stocks are considered interlisted stocks.
Mr. XXXXXXXX, thank you for contacting us. If you'd like more help with Southridge Enterprises, just ask in a reply to this e-mail or call us at 1-800-769-2560 - Monday to Friday from 7:00 a.m. to 8:00 p.m. Eastern Time.
Sincerely,
XXXXXXXXXXXXXXX | National Client Liaison | RBC Direct Investing
------ Do not delete this ID/Evitez de supprimer le numéro suivant: ------ XXXXXXXXXXXXXXXXXXXXXX
To : XXXXXXXXXXXXXXXXXXXXXXX From : RBC Direct Investing Subject : RE: Other Inquiries Date : 18 Jan 2013 16:06:31
-------------------------------------------------------------------------------- Dear Mr. XXXXXXXXX,
Due to the character limitations, this message will be sent in two responses. This is the second of two messages.
OTC issues are subject to a much greater chance of market manipulation, due to the minimal regulatory oversight of both the issues and the market in general. There is no real time surveillance of the OTC market as there is on a regulated stock exchange, increasing the risk of this market manipulation.
There are few if any listing requirements for US OTC stocks. Many issuers are incorporated overseas, and have limited or no requirements for financial disclosure and reporting. As well, the ability of any persons or regulators to pursue regulatory actions or legal recourse against such foreign entities is limited. It is imperative that you research your trades carefully before participating in this market.
Please note, due to the nature of OTC stocks, many Canadian financial institutions will not accept share certificates. RBC Direct Investing may be able to provide the share certificates on request, however it is our policy that we are unable to deposit these certificates into RBC Direct Investing accounts. To clarify, even if we were to issue you a certificate for the shares, we are unable to accept these same certificates back at RBC Direct Investing. There may also be issues depositing these certificates at other financial institutions. I am investigating if we are able to issue these certificates. Please note, the certificate request fee is $50 + tax. As soon as I receive the information, I will respond back.
At the time of this response, you are holding XXXXXXXXX shares of SRGE. You do not have a short position in this shares. From the perspective of RBC Direct Investing, you have a long position in SRGE.
I hope the information above answers your questions. As I mentioned, I will be responding back with respect to the dividend payout as well as if we are able to issue share certificates for SRGE.
We appreciate your business.
Mr. XXXXXXX, thank you for contacting us. If you'd like more help with Southridge Enterprises, just ask in a reply to this e-mail or call us at 1-800-769-2560 - Monday to Friday from 7:00 a.m. to 8:00 p.m. Eastern Time.
Sincerely,
XXXXXXXXXXXXXXXX | National Client Liaison | RBC Direct Investing
AI
