FWIW
KALISPELL, Mont.--(BUSINESS WIRE)--Sept. 15, 2000--"There is no
reason for such large short positions to be taken in our stock," said
Larry Vance, chairman of Earth Search. "NASD rule 3370 (b)(2)(B) which
allows member firms to make a short sale without having to make a
positive determination that securities are available to borrow for
delivery by settlement date, allows these so called market makers to
sell securities they never have to deliver. This has the effect of
creating securities out of thin air because there is no accountability
required by the NASD for OTCBB stocks. Now these very same 'market
makers' have a vested interest in keeping the stock price as low as
possible where they can cover their positions if they are audited."
The National Association of Securities Dealers (NASD) is comprised
of brokerage firms ranging in size from the very largest, who's names
are known to all, to unknown local and regional firms known only to a
small cadre of clients and other small firms. The NASD is a self
regulating group designed to enforce the rules in case of violations,
such as abuse of rule 3370 (b)(2)(B). The SEC and state district
attorneys are the final stop for regulatory enforcement.
"The stock holders of Earth Search don't deserve to be treated
this way by unscrupulous market makers who short OTCBB stocks for
profit in the name of legitimate market making," complained Vance.
"But there is a solution -- we have been approached by a senior United
States senator who informed us that there are hundreds of companies
like ours who fall prey to this sort of activity. Currently the
senator and his staff are investigating the abuse of rule 3370
(b)(2)(B) as well as our situation in order to determine which federal
agency would most efficiently investigate these issues. By the time
the investigation is completed and all of the bulletin board companies
list their complaints, we are optimistic that the rules governing
short positions on the bulletin board will be changed to reflect a
more fair and free market rather than a market controlled by market
makers. In the meantime, we suggest that ALL shareholders of Earth
Search immediately order out their stock certificates. This means that
you request from your brokerage house that they immediately deliver to
you the stock certificates representing all of your shares of Earth
Search. This will require the market makers to go into the market to
purchase shares to deliver into your hands. Not only will they have to
buy one share to give to you, they will have to buy another share to
pay back what they borrowed in order to 'book' your share to your
account when you purchased the stock."
"If existing shareholders as well as new shareholders order
delivery of their certificates, you can expect activity by not only
the market makers but by the brokerage firm through which you
purchased your shares," said Vance.
"You can expect your brokerage firm to be very much against this
policy. When you request your shares, your broker must deliver them to
you within the guidelines set down by the SEC. If your broker doesn't
have the shares to deliver to you, the brokerage house must go into
the market and purchase the shares for delivery," said Vance. "The
whole industry is tied together in this mess. They are more than
willing to sell you stock when they make a commission and a profit.
They scream like wounded animals when they have to make good their
mistakes and abuses at a loss. The only way to take control from these
people is to demand that they deliver your certificates to you."
For some time Earth Search has met all requirements for listing on
the NASDAQ except for the price per share. Both the NASDAQ and the
NYSE have very stringent requirements regarding the shorting of stock
either for profit or for market making. Shares must be daily accounted
for and marked to the market as if delivered.
"The instant we arrive at the per share price required by NASDAQ,
we will apply for listing on that exchange," says Vance. "We are
determined to wage war against these people. Anyone who has been with
Earth Search for a while knows we won't quit and we won't go away."
Earth Search will attempt to contact all of its shareholders to
coordinate this program. All shareholders should contact the main
office either individually or collectively as soon as possible for
more information.
For more information call 406/751-5200 or e-mail earthsrch@aol.com
or www.earthsearch.com
This news release includes forward-looking statements that involve
a number of risks and uncertainties. The information reflects numerous
assumptions as to industry performance, general business and economic
conditions, regulatory and legal requirements, taxes and other
matters, many of which are beyond the control of the company.
Similarly, this information assumes certain future business decisions
that are subject to change. There can be no assurance that thee
results predicted here will be realized. Actual results may vary from
those represented and those variations may be material.
--30--RYG/se*
CONTACT: For Earth Search --
Larry Vance/Tim Monroe, 406/751-5200
earthsrch@aol.com
www.earthsearch.com
AI
