Standard Holdings Details Stock Distribution
MCLEAN, VA -- (MARKET WIRE) -- 05/30/2006 -- Standard Holdings Group Ltd., (PINKSHEETS: SNDH) stock was distributed to H-Quotient, Inc. (PINKSHEETS: HQNT) shareholders on February 22, 2006. The Company has received numerous calls from shareholders whose stock is held in brokerage accounts, complaining that they have been unable to obtain the SNDH shares from their brokers.
A number of calls came from Ameritrade customers, but the head of that firm's Reorg Dept., Ms. Gwyn Treinen, has taken action to see that any HQNT shareholders who request their SNDH shares are accommodated. She may be reached at (888) 723-8504, ext. 5826.
All HQNT shareholders who have SNDH shares listed on their brokerage statements are entitled to receive SNDH stock certificates, and they are encouraged to follow the Ameritrade example to do so because it is the only way to ensure delivery of those shares. Your broker is obligated to provide them.
Because the shares have a restrictive legend, they cannot be electronically transferred. They can only be transferred in certificate form. The restriction will remain for a period of 21 more months or until a registration is filed, whichever is sooner. As a result, brokers who shorted HQNT stock did not receive shares for those short positions.
Example: A broker who is holding 1 million shares of HQNT and borrowed (shorted) those shares to sell to other customers would show a total of 2 million shares in their customers' accounts. However, the broker would have only received the distribution of SNDH shares for the 1 million shares he actually holds (a total of 500,000 SNDH shares because one SNDH share was distributed for every two HQNT shares). However, to satisfy the holders of all 2 million HQNT shares, the broker would need 1 million SNDH shares. Therefore, a broker who has shorted HQNT shares would not be able to issue SNDH certificates to all of its HQNT customers without first acquiring additional shares in the open market.
This announcement may contain, in addition to historical information, certain forward-looking statements that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated.
For more information visit the Standard Holdings Group web site at standardholdingsgroup.com
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Contact:
Standard Holdings Group Ltd.
703-821-3434
SOURCE: Standard Holdings Group Ltd.
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