Drone Services USA Inc. (DSUS)

[Cassandra]

PVEC makes it clear that the Series C certificates will be mailed directly to shareholders rather than to their brokers. I believe that Waylan of Scottrade misinformed you.

Series C Preferred Stock is a preferred stock that will be restricted from redemption for six (6) months from the date of issue and has a par value of $.20 (twenty cents). Series C stock will be issued in certificate form and mailed to all shareholders of record beginning the following week after recording, the week of March 17th, 2014, arriving to shareholders by mail. Beginning September 17th, 2014, certificates will be eligible for redemption for face value in cash or $.20 worth of PVEC common stock. In the event the price per share is higher than face value of $.20 (twenty cents), the Preferred C Series Stock may be redeemed for 1 (one) share of common stock at the current price per share.

http://ih.advfn.com/p.php?pid=nmona&article=61272609

PVEC also claims that:

1. Each Series C Preferred Share can be redeemed for $.20 cash (but doesn't mention if that is at the company or shareholder option).

2. Alternatively, each Series C Preferred Share can be redeemed for $.20 worth of common stock (but does not mention that the common stock issued would have to be restricted for a year under Rule 144)

3. If the price per share is higher than $.20, they will redeem each Series C share for one share of common stock, which would be higher than the face value of $.20.

Beware -- this $4 million gift distribution does not make sense and is too good to be true. Clearly PVEC is not just going to gift $4 million in cash.

At best, shareholders would receive option #2 in which they would receive paper certificates for common stock issued with a restrictive legend for which, after the required holding period, they would have to pay for a legal opinion to have removed and then find a boutique broker who accepts such certificates for deposit and resale. Such brokers charge high commissions.

It is also not known what effect a reverse split would have on the Series C shares. Most likely the company would reverse split them as well. I strongly suspect the company will do a reverse split before these shares are redeemable.

In the end, I believe that PVEC shareholders will find this gift distribution to be worthless.