EDIS-vents out frustration of what we already know
is bull sh*t..
EDIS-Earth Search Announces Certificate Order Out Program; Earth Search Today Announced That It Had Determined That OTCBB Market Makers Were Abnormally ''Short'' Earth Search Stock
KALISPELL, Mont.--(BUSINESS WIRE)--Sept. 15, 2000--"There is no reason for such large short positions to be taken in our stock," said Larry Vance, chairman of Earth Search. "NASD rule 3370 (b)(2)(B) which allows member firms to make a short sale without having to make a positive determination that securities are available to borrow for delivery by settlement date, allows these so called market makers to sell securities they never have to deliver. This has the effect of creating securities out of thin air because there is no accountability required by the NASD for OTCBB stocks. Now these very same 'market makers' have a vested interest in keeping the stock price as low as possible where they can cover their positions if they are audited."
The National Association of Securities Dealers (NASD) is comprised of brokerage firms ranging in size from the very largest, who's names are known to all, to unknown local and regional firms known only to a small cadre of clients and other small firms. The NASD is a self regulating group designed to enforce the rules in case of violations, such as abuse of rule 3370 (b)(2)(B). The SEC and state district attorneys are the final stop for regulatory enforcement.
"The stock holders of Earth Search don't deserve to be treated this way by unscrupulous market makers who short OTCBB stocks for profit in the name of legitimate market making," complained Vance. "But there is a solution -- we have been approached by a senior United States senator who informed us that there are hundreds of companies like ours who fall prey to this sort of activity. Currently the senator and his staff are investigating the abuse of rule 3370 (b)(2)(B) as well as our situation in order to determine which federal agency would most efficiently investigate these issues. By the time the investigation is completed and all of the bulletin board companies list their complaints, we are optimistic that the rules governing short positions on the bulletin board will be changed to reflect a more fair and free market rather than a market controlled by market makers. In the meantime, we suggest that ALL shareholders of Earth Search immediately order out their stock certificates. This means that you request from your brokerage house that they immediately deliver to you the stock certificates representing all of your shares of Earth Search. This will require the market makers to go into the market to purchase shares to deliver into your hands. Not only will they have to buy one share to give to you, they will have to buy another share to pay back what they borrowed in order to 'book' your share to your account when you purchased the stock."
"If existing shareholders as well as new shareholders order delivery of their certificates, you can expect activity by not only the market makers but by the brokerage firm through which you purchased your shares," said Vance.
"You can expect your brokerage firm to be very much against this policy. When you request your shares, your broker must deliver them to you within the guidelines set down by the SEC. If your broker doesn't have the shares to deliver to you, the brokerage house must go into the market and purchase the shares for delivery," said Vance. "The whole industry is tied together in this mess. They are more than willing to sell you stock when they make a commission and a profit. They scream like wounded animals when they have to make good their mistakes and abuses at a loss. The only way to take control from these people is to demand that they deliver your certificates to you."
For some time Earth Search has met all requirements for listing on the NASDAQ except for the price per share. Both the NASDAQ and the NYSE have very stringent requirements regarding the shorting of stock either for profit or for market making. Shares must be daily accounted for and marked to the market as if delivered.
"The instant we arrive at the per share price required by NASDAQ, we will apply for listing on that exchange," says Vance. "We are determined to wage war against these people. Anyone who has been with Earth Search for a while knows we won't quit and we won't go away."
Earth Search will attempt to contact all of its shareholders to coordinate this program. All shareholders should contact the main office either individually or collectively as soon as possible for more information.
For more information call 406/751-5200 or e-mail earthsrch@aol.com or www.earthsearch.com
This news release includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that thee results predicted here will be realized. Actual results may vary from those represented and those variations may be material.
CONTACT:
For Earth Search --
Larry Vance/Tim Monroe, 406/751-5200
earthsrch@aol.com
www.earthsearch.com
KEYWORD: MONTANA
BW0172 SEP 15,2000
9:39 PACIFIC |
