"I do have an Etrade account"
Let's pretend that Daniel Colon did just what "FINRA has suggested that" the company advise shareholders to do:
"the individual shareholders should contact their brokers to seek assurance that the stock they have purchased and is recorded on their accounts, is not short and is fully paid for and delivered."
And let's pretend that "the Company has also contacted three of the brokers (Etrade, Zecco, Fidelity) to ask the same question and provided the aggregated data on behalf of its shareholders."
And the communication to Etrade included the following statements:
"A review of 424 individual shareholder accounts and related “testimonies” cumulatively add up to more shares held in shareholder brokerage accounts than have been issued by the Company (143,824,700 common shares)."
"E*Trade currently holds 48,110,598 shares in accounts for shareholders based on only 60% of the total number of shareholders." Also noting to Etrade that Zecco and Fidelity held an additional ~60m shares.
If the above actually occurred, what would you do if you were Etrade? They, like some folks we know, might think that EIGH is blowing smoke. But we know they can't tell their customers that. And they can't, instantaneously at least, establish just what the truth is. So maybe they set up an alert for the symbol and provide the following boilerplate to address the issue, whether composed by Etrade or by someone else on their behalf.
"This message is regarding 8000 INC (EIGH).
8000 INC is currently identifying all shareholders and their accurate holding, including those held with broker-dealers. The company is working through verified records, testimony and statements to confirm the identified naked short position. Brokers and clearing firms are aware of the situation and are undertaking the appropriate action. The relevant authorities have also been advised of the situation.
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The exchange will take place through the transfer agent for 8000 INC once all accounts have been verified. There is no action required on your behalf at this time. 8000 INC and their transfer agent will take all necessary action and inform all shareholders accordingly as needed."
I'm surprised that we haven't heard from any of the other holders of the 48m shares held in Etrade accounts, but wouldn't an account holder be able to determine whether this is their boilerplate response to EIGH inquiries regardless of whether they held shares? I was unable to find a non-customer email address for contacting Etrade....presumably they find this an efficient way to avoid new customers.
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