re:GMXX>Investor Communications International, Inc. Announces Corrections To Inaccurate and Biased Reporting Conducted by Investrend Communications, Inc.
Wednesday January 22, 6:30 am ET
BLAINE, Wash., Jan. 22 /PRNewswire/ -- Investor Communications International, Inc. ("ICI") -- A FinancialWire entitled, "A Tangled Web for Rebellious Small Companies" dated January 21, 2003, and produced by Investrend Communications, Inc. ("Investrend") is biased in content and contains numerous inaccuracies. Inaccuracies in the Investrend FinancialWire include: incorrect ownership information relating to Investor Communications International, Inc. contrary to information in current SEC filings made by GeneMax Corp., incorrect information on analyst coverage of various companies conducted by Investrend, incorrect information regarding the requirement of certain SEC filings, incorrect analysis relating to earnings and expenditures of GeneMax Corp., incorrect insider/non-insider ownership information of GeneMax shareholdings, and the incorrect identity of the President of GeneMax Corp., amongst other facts.
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Confusion is furthered in the FinancialWire of Investrend by pointing the reader to other inaccurate articles written by Dow Jones News Wires, instead of utilizing the current and accurate SEC filings made by the companies. ICI alleges the Investrend FinancialWire taken as a whole, provides the reader with incorrect facts, faulty commentary and sensational comments intended to mislead, as well as faulty innuendo that erroneously create a sense that there is something wrong with some or all the companies that are associated therein -- all this from a supposedly reputable reporting source.
The Investrend FinancialWire goes on to indicate that Hadro Resources, Inc., and its analyst coverage was discontinued for reasons other than those that are real. Investrend fails to advise the reader that Hadro Resources, Inc. has had numerous disagreements regarding the accuracy and quality of Investrend work product with respect to Investrend's analyst coverage. Hadro Resources, Inc. was in the process of internal restructuring commensurate with a change in business direction as reported in current SEC filings, when Investrend insisted on distributing their inaccurate analyst report, even though Hadro Resources, Inc. advised Investrend that it would mislead the public. Investrend, with knowledge that they were producing inaccurate information, distributed analyst reports that contained again, erroneous information, all for the sake of keeping with an Investrend publishing schedule. Analyst, Jonathan Kolb, CFA, indicated his understanding of Hadro Resources circumstances and requirement at the time. Mr. Kolb stated his willingness to wait until public disclosure of relevant facts yet to be finalized were disclosed publicly, but was overridden by Investrend CEO Gayle Essary with respect to the decision to release the erroneous information. Investrend proved impossible to work with after that point, and the Hadro Resources, Inc. dispute with Investrend remains unresolved.
Grant Atkins, a consultant to ICI commented, "It is disheartening to see a company like Investrend, that allegedly provides fair reporting and analyst coverage as a mainstay of its business, exhibit biased reporting and disseminating inaccurate facts, fuelled by a questionable agenda," Atkins adds, "Biased and inaccurate reporting by media sources can only undermine the public's trust."
A group of OTC bulletin board listed companies that have exited the Depository Trust Corporation ("DTC") system have subsequently been the target of a media campaign that questions the validity and legality of this procedure. These companies began exiting the DTC system in 2002 due to its inability to provide authenticity of actual shares trading, allowing for illegal naked short selling trade abuses. The growing group of companies confirmed the precedence for the use of this method and support by all governing bodies concerned. The group of companies that have opted out of electronic share ownership via the Depository Trust Corporation in favor of actual share certificates includes GeneMax Corp. (OTC Bulletin Board: GMXX - News), Hadro Resources (OTC Bulletin Board: HDRS - News), Vega Atlantic Corporation (OTC Bulletin Board: VATL - News), Ten Stix, Inc. (OTC Bulletin Board: TNTI - News), and Intergold Corp. (OTC Bulletin Board: IGCO - News) amongst others.
Under a naked short sale of stock, short positions are not declared, shares are not borrowed to cover the short sale, and shares are sold without delivering the stock to the purchaser. Naked short selling results in the undermining of real shareholder ownership by naked short sales of stock and resulting failed deliveries of real certificates that artificially inflate share ownership and devalue the trading prices of shares in the marketplace. Unscrupulous brokers and market makers may conspire to manipulate and devalue the price of securities in this way.
News wire media targeting the group can mislead the investing public and do not address the real underlying concerns, namely that the 3-Day Settlement System in the U.S. does not have integrity: The basis for moving to a certificate only share transfer system has nothing to do with short selling but instead with "naked short selling" where shares sold are never borrowed, never delivered by the seller, but where the seller collects money for the stock they never delivered in three days. The three days settlement system run by the National Securities Clearing Corporation ("NSCC") does not ensure that shares that are sold in a transaction are ever delivered. This takes place routinely in the U.S. Securities industry.
Shareholders purchasing shares in the United States do not often understand that even though their broker will take their money and fill their order for a share purchase, shares are routinely not delivered to the broker on behalf of the client. The client in most cases never knows that share delivery abuses are taking place as they do not normally take delivery of their actual share certificates. It's important to note that the NSCC no longer guarantees at their website that a trade will be conducted within the three day settlement process. The money gets settled in 3 days, but the stock is routinely not delivered, and a process of "kited" or failed buy-in's can occur.
In a "buy-in", the stock not delivered to the purchaser in the original naked short sale transaction is supposed to be re-purchased at arm's length from other bonifide sellers of real share certificates, and the cost of the stock "bought in" charged back to the original broker who sold the stock naked short. However, buy-in's are routinely conducted without adhering to real market dynamics; shares "bought in" are purchased from non-arm's length parties in the marketplace, or are purchased at a share price that has been manipulated lower by dilution from repeated naked short sales, or non-existent shares are purchased from other naked short sellers that do not own real shares. The buy-in that is intended to rectify the original naked short sale of stock often results in a further failed delivery of real share certificates. Cooperating broker dealers in naked short sales of stock will repeat this failed buy-in process over and over again to circumvent share delivery rules so that real certificates are never obtained for the purchasing client in a naked short sale transaction. The process of repeated failed "buy-in's" relating to a naked short sale is known as "kiting" and allows unlimited supply of non-existent stock to flood the marketplace to provide an unfair market for the shares transacted (more supply than demand and lower share prices). Kiting of buy-in's on the stock not delivered is a circumvention of the 3-day settlement rule discussed above.
Another abuse used to circumvent share delivery and buy-in's is known as "pairing off." This is a process where brokerages who have numerous naked short share transactions of buying and selling between each other elect over a period of time to settle up the difference in amounts owed in cash. In this manner shares are never delivered in any of the transactions between the brokerages and the buy-in process is circumvented completely. In these circumstances, the 3-day settlement system with respect to share deliveries is non-existent as brokers elect to transfer no shares.
At a time when initiatives to automate electronic trading systems in America further are contemplated by certain groups, certificate only transfer system highlights the nature and scope of rampant trading abuses in our securities trading and clearing systems. Shareholders purchasing shares have no idea that the stock they are buying is routinely not delivered notwithstanding that they have paid for it. As shares purchased by a shareholder only are listed as a line item on their account statement with their broker, they are none the wiser. Investor Communications International, Inc., a private firm from Washington State has been working with Global Securities Stock Transfer, and is in the process of contacting all OTCBB issuers to obtain their support to lobby Congress on these issues.
SAFE HARBOR STATEMENT
THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN."
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Source: Investor Communications International, Inc. |
