Drone Services USA Inc. (DSUS)

[Cassandra]

Time will show if Waylan was correct. Did you verify that he an actual licensed broker rather than a customer service representative? Did he contact the company to verify his understanding?

I would be extremely surprised if the preferred shares simply "show up" in your account. Is he aware that this is not a dividend but a "gift distribution" and that it was not scheduled through FINRA?

Keep in mind that all brokers confirmed the IMAG Group (fka Red Tides) spin-off dividend that was scheduled through FINRA for payment August but never ultimately distributed.

Also, this is incorrect:

... when a company files bankruptcy and is liquidated completely, PREFERRED SHARES are first to receive proceeds from asset liquidation. So even IF THEY GO OUT OF BUSINESS.... everyone who owned shares on March 14th, 2014 will be first to be repaid for their investments.

Creditors have first priority in liquidation. If there are any assets left after ALL creditors have been paid in full, preferred shareholders have priority over common shareholders. However, they do not have first priority as you claim.

In the case of PVEC, it's doubtful that there would be sufficient assets to cover the creditor claims let alone there being assets remaining to be distributed to preferred shareholders. I'm sure the company knows this.

How Are Assets Divided in Bankruptcy?

1. Secured Creditors - often a bank, is paid first.

2. Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.

3. Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.

http://www.sec.gov/investor/pubs/bankrupt.htm

Upon bankruptcy, a firm will be required to sell all of its assets and pay off all debts. The usual order of debt repayment, in terms of the lender, will be the government, financial institutions, other creditors (i.e. suppliers and utility companies), bondholders, preferred shareholders and, finally, common shareholders. The common shareholders are last because they have a residual claim on the assets in the firm and are a tier below the preferred stock classification. Common shareholders often receive nothing at all, as there is usually very little left over once a firm has paid its debts.

http://www.investopedia.com/ask/answers/06/bankruptpublicfirm.asp