Replies to post #117155 on Drone Services USA Inc. (DSUS)

[jerrymike]

that clears it up for me no more DD on that anymore member mark you on that

[Ache Shoe Alley]

GREAT POST griffin….#9 MARK FOR THAT……Great to get facts here..

[13strats]

Nice job griffin

[kaisdaboss88]

nice post ,,good info buddy

[getmoreshares]

A+ post great job!!!!
It is now a sticky!
will we get a little snow?
dang E.TN weather--LOL

[bucks2pennies]

Very forthright. Seems reasonable to me. I would accept the inevitable. Free money for long term faith. Nice.

[osu78OnFire]

Great post JJ! However there is one point you made that I would like to clear up

You stated

OR it's a last minute hail mary charge to raise funds before an impending inevitble bankruptcy and delisting scenario

Since these shares do not raise the A/S, O/S or anything else they can never be used to generate revenue for the company.

These are gift shares not share dividends (which could be used as you describe).

Again Great Job!

PVEC LONG AND STRONG!

[roach4091]

Great post

[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

[MasterYoda]

GREAT POST.... Been in PVEC for a year and a half now, I'm in so deep that it's not even worth me to sell.

I had so much hope in this company, thought it was the real deal and since have held. I'm in for the long run (obviously, I've been in for over a year now) but everyday gets harder and harder to stay positive

This was the first post in a while to make me feel positive

Nice DD.

[Homer911]

So, has ANYBODY received the Preferred shares?

I thought we were suppose to get them no later than 5 days after MArch 14th? I havent gotten any in my account. anybody else?

[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.

[Cassandra]

jgriffin: It seems you have received conflicting information from your broker, Scottrade. Do you have an explanation for the discrepancies?

My broker was forwarded the PR about gift shares as well as Jason's explanation and said it looks like "you really lucked out on this one, very nice" he also stated "bring the certs in when you receive them, and we will get you the common stock or the cash... Whichever you want" they WILL NOT however deposit penny stock preferred Cs into your account. But conversion into commons or cash is all very simple and very cheap.

Source: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=98802453

[Kurdishmamba]

Heard about somebody's broker saying the same thing about imag Dividends. You will get burned. This company literally lies about everything. I've never seen anything like this before.

[Cassandra]

It appears that Scottrade and any other broker that supposedly assured customers after the 2/28/14 PVEC press release regarding the "gift distribution" of Series C stock that the distribution shares would simply "show up" in the brokerage accounts of PVEC shareholders was 100% false.

In fact, the originally announced "gift distribution" with a record date of 3/14/14 turned out to be just another of PVEC's many lies. PVEC rescheduled the record date of the "distribution" to 4/15/14 without explanation. PVEC has also made no explanation as to any revised date for or terms of redemption of the preferred share certificates.

According to a statement made by Kerry Thacker, PVEC's IR rep and self-proclaimed Director of Internal Operations, the company itself will be sending the gift distribution certificates rather than the transfer agent. Kerry also states that shares will not be deposited by a shareholder's broker as the the post to which I am responding went to great extreme to claim the opposite.

Being that the previous PR issued on 2/28/14 announcing a "gift distribution" of Series C Preferred Shares turned out to be fraudulent, PVEC shareholders should be concerned about any changes in redemption value or redemption date of any preferred shares they might receive from the most recently-announced distribution that did not contain these details.

Kerry's claim today:

Again, the company will be sending these Redeemable Certificates. They will not be sent by the Transfer Agent or deposited by your broker.

As I have often stated starting on 2/28/14 when this bizarre $4 million "gift distribution" was announced, I believe it will end up entirely worthless for anyone who happens to receive the Series C Preferred Shares.

Review the bold claims made in this post:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99293636

Compared to what was previously claimed:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99285416