Replies to post #12740 on Greenshift Corporation (GERS)

[knight247]

WASHINGTON (Reuters) – The top securities regulator pledged a rigorous review of potentially outdated private securities trading rules, but stopped short of endorsing changes being advocated by Republican lawmakers.

At a congressional hearing on Tuesday, Securities and Exchange Commission Chairman Mary Schapiro was pressed to make regulatory changes to help small and medium-sized companies more easily raise capital without going public.Republicans want the SEC to raise the 500 shareholder threshold, or else change the rule so that more sophisticated investors who understand the markets will not count toward the total. They say the cap is too low and forces companies to raise capital only with large sophisticated investors and harms the ability of smaller investors to get a piece of the action. They also fear it creates costly logistical challenges for companies as they seek to manage the shareholder total so they do not hit the 500 mark.

"These folks are very sophisticated," said Representative Patrick McHenry. "For heaven's sake, if you look at these substantial institutional players, they've got better research and information than the SEC and the government," he said.

Schapiro sought to strike a balance between lowering regulatory barriers for companies and protecting investors from fraud, telling McHenry that sophisticated investors "are no less deserving of the protections of the securities laws."

She and SEC Corporation Finance Division Director Meredith Cross assured lawmakers the SEC is exploring whether to exempt certain investors from the 500 shareholder rule as part of the SEC's broader review into private securities trading. They also said they are exploring if the 500 number is the right one.

In addition, Cross said the SEC is thinking about soliciting input from the public about potential changes to general solicitation rules.

Some Democrats on the panel expressed skepticism about overhauling rules designed to protect investors.

"I fully support helping U.S. firms access additional capital, but I also believe this must be done without sacrificing critical protections," said the Elijah Cummings, the committee's top Democrat.

[nobody12378]

I have read Slash, and respect his hard work and writing. I also read KK. The following is from his 10-K released five weeks ago. No one seems to be hearing these words only those that they want to hear (Italics and bolding added).

From page 17:
RISKS ATTENDANT TO OUR BUSINESS

We are a development company with a history of net losses, and we may not achieve or maintain profitability.

We have had a history of operating losses, and may in the future incur operating losses which could be substantial. Although our current licenses may provide sufficient revenue to bring us to profitability, we may not be able to sustain or increase profitability thereafter, which could negatively affect the trading price of our common stock. We have incurred net losses since our inception, including losses of $12 million and $20 million in 2010 and 2009, respectively. As of December 31, 2010, we had an accumulated deficit of $169 million. We are not likely to be profitable for the twelve months ended December 31, 2011. We are a development company and, to date, our revenues have been extremely limited.

From page 24:
Our lenders own convertible debentures issued by the Company which permit our lenders to acquire Company common stock and resell it to the public. At the current market price, our lenders could convert collectively convert their debentures into over 50% of our outstanding common stock. It is possible that resale of shares by our lenders will significantly reduce the market price for our common stock. In addition, because the market price of our common stock is currently less than its par value, the conversion price, which is a fraction of the market price, is less than par value. Since the Company is not permitted to issue common stock for consideration less than par value, we must either incur costly penalties, or implement one or more additional reverse stock splits to insure that the conversion prices will equal or exceed the par value of our shares.

I agree with Slash in the long term value, with the proviso that GERS capitalizes "soon" before newer technology antiquates theirs. In the short term, the only way to make money off GERS, in my opinion, for the current common stock holders is to not buy any more now, wait until the R/S (which I believe will be that last) and buy in again before Q2 results are out.

Animal, if this makes me negative, then I guess the world is flat.