Drone Services USA Inc. (DSUS)

[4on4off]

INCORRECT!

The explanation has been posted on the company website:

As I stated, I was getting clarification for this - and as such I have, so we can all calm down.

As you all know - it was PR'd today -

499 million shares returned to the treasury immediately. A stop order was issued for another 599 million shares on top of that bringing that total to 1.1 billion shares being returned to the treasury. As all of you business owners know - when you have collateral for loans and lines of credit, especially stock loans, you must maintain a "level of collateral" in this case, stock, you must have a certain amount equivalent to a certain dollar amount AVAILABLE FOR ISSUE - LET ME REPEAT THAT IN NO UNCERTAIN TERMS-AVAILABLE FOR ISSUE. As the stock price was lowered, the amount of shares needed to be available to maintain these business relationships increased. As the stock price raises, obviously these levels will decrease proportionately.

Now, with that said, the processing of the 499 million returned certs has not been completed by the TA - they are still technically "issued" as outstanding and not available for disbursement in the event that it is needed. The stop order that has been placed on the other 599 million have not been returned to the treasury completely as of today - this can take up to 30 days to complete and are classified in the same manner - still "technically" issued. In the mean time, the collateral balance still needs to be maintained per the contract with the financial institution(s). Thus the need to increase the A/S NOT THE O/S to maintain the collateral level as required by the financial institution(s).

Let me state this again and I would love to see someone quote me on this everywhere...

THIS INCREASE IN AUTHORIZED SHARES WAS FOR COLLATERAL ONLY - THESE SHARES HAVE NOT BEEN ISSUED AND PVEC HAS NO INTENTION OF ISSUING THEM.