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AchillesOFstock

05/31/12 12:06 PM

#60057 RE: papafishie #60052

Papafishie-

You think the DTC locks the stock and then the company finds out about it at the same time as shareholders do? No. Roth was notitified prior to the lock was put in place. A respectable and dilligent CEO/CFO would have alerted shareholders via a PR moments after the DTC stepped in, not weeks later. I had to hear about the DTC lock from my broker and fellow board members while waiting for Roth to release a PR. And no, Smokefree will not be able to sell their authorized preferred as preferred stock is also cleared in the same manner as common stock. Therefore, the DTC will not clear these shares and the only other option would be to use broker dealers that do their own inhouse clearing. Secondly, preferred shares are generally not sold to fund operations when ALL of your authorized shares are outstanding. Take a step back and look at the bigger picture here bud. Smokefree has no more common shares to issue, they are backed into a corner. Even if they could sell more common shares, do you really want your current shares to be diluted further? I mean seriously, we're already at .001, what do you think another 50 million shares added to the supply side would do to our current price?