that is the DUMBEST NEWS A OTC CAN ISSUE
GUILTY AS CHARGED !
Green Dolphin To Aggressively Combat Naked Short Selling Of The Company's Common Shares
POWELL, TN, Sept. 30 /PRNewswire-FirstCall/ -- Green Dolphin Systems Corporation, (OTCBB: GDLS) ("Green Dolphin" or the "Company"), announces its intention to aggressively combat the naked short selling of its common shares as traded through the facility of the OTC Bulletin Board. "The management of Green Dolphin has a regulatory obligation to maintain an orderly market for its shares and a duty to our shareholders to protect share value," reports President Nick Plessas. "For the past number of months naked short selling of our common shares has negatively affected both share values and price stability. We have spoken with securities counsel for Green Dolphin, consultants in the securities field who are friendly to the Company and the CEO's of other OTCBB issuers which have been similarly attacked by naked short sellers. Green Dolphin's situation is unique in that it is a relatively small issue that lends itself to a potentially expeditious remedy. I am therefore asking all Green Dolphin shareholders to demand physical delivery of their stock certificates from their brokers. Those shareholders who have not already called for and received delivery of their Green Dolphin stock certificates can access a form letter demanding physical delivery from their brokers at the Company's website - greendolphin.net. All shareholders are entitled to receive their certificates. While these physical certificates can be held by the shareholder, the ability to effect a timely re-deposit of the certificate when our goal is met suggests segregation of the certificate with your broker."
The Company believes that the "physical" withdrawal of its common shares from the "electronic trading" system will have two results. The first is that it will be increasingly difficult for a potential selling broker to make an "affirmative determination" that there is sufficient stock in the system to cover a naked short sale order. If that is the case, pursuant to NASD rules, the naked short sale order cannot be executed. The second result is to expose the extent of the short position and compel the naked short sellers to buy stock in the open market and cover. It is important to understand the difference between short selling - a legitimate stock trading activity that involves borrowing and selling stock to be purchased at a later date - and naked short selling - selling shares without actually borrowing them first. With a naked short there is no stock available for transfer to the buyer because no stock was borrowed from the system to "cover" the short. It is critical to note that, while the short may be "naked", it is not unsecured. The naked short seller must provide that amount of cash required by the rules to put a selling broker in a position to buy shares in the market and effect delivery when called upon. Therefore, if you want to defeat a naked short seller, the shareholders must call for physical delivery of their certificates and, subject only to the integrity of the selling broker, force the naked short sellers to buy in and cover.
Please be aware that, in calling for delivery of our shares and "squeezing the shorts", there may be a short term anomalous increase in the price of the stock as naked short sellers are bought in and forced to cover. Only when the market is cleansed of naked short sellers will the price of the stock more accurately reflect the performance of the Company and the systemic factors that affect all stocks over the course of time rather than the actions of market manipulators seeking to take advantage of flaws in the electronic trading system.
"As a Company we have worked very hard to develop and market environmentally friendly products for the benefit of the consuming public and our shareholders", adds Mr. Plessas. "Like most Americans, our philosophy is to come to work each day and make money by adding value. Unfortunately, as a group, the shareholders of Green Dolphin have been targeted by people who prefer to make their money by subtracting value - in this case from the value of our shares. I believe it would be a disservice to our shareholders to consider allowing these naked short sellers to profit by allowing them to cover either through the issuance of stock from treasury or by facilitating the transfer of a block of our shares. My intention is to defend shareholder value by fighting the naked shorts and I am asking our shareholders to join me in the fight by calling for delivery of their certificates."
For information relating specifically to Green Dolphin's policy in relation to the naked short position against the Company's common shares or for assistance with regard to preparation and delivery of shareholder requests for physical delivery of their Green Dolphin shares, Green Dolphin shareholders can contact a representative of the Company at greendolphinsystems@yahoo.ca.
Safe Harbor Statement
Statements contained in this news release regarding Green Dolphin Systems Corporation and other planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond the control of Green Dolphin's management, including, but not limited to, reliance on key markets, suppliers, and products, currency fluctuations, dependence on key personnel and trade restrictions, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in Green Dolphin's Registration Statement on Form S-8 filed with the Securities and Exchange Commission on July 1, 2003 and the firms 10KSB/A filed with the SEC dated April 28, 2003. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above.
Green Dolphin Systems Corp.
CONTACT: Nick Plessas, CEO of Green Dolphin Systems Corp.,
1 (416) 679-0707 |
