Mr Cody, I believe you need to take the word guarantee in context with the whole 5/18 PR and also realize even though the ex-dividend date, to be determined, will have more bearing on TIPS dividend ownership than 5/20 DOR date, a DOR date is still part of the necessary process. It would of been better to wait for registration process then announce DOR date but it did not happen that way as is the case for other companies that have given dividends,i.e. BANY. As far as a civil lawsuit goes, I seriously do not think any attorney working on consignment would take the case as the spin-off is still in place, only time frame has changed from what was previously thought by management. Everyone is not happy with the misunderstanding and share price but the share price was expected to pull back regardless if shareholders where able to sell TNRG after DOR and still be entitled to TIPS. As it turns out shareholders must own TNRG up through ex-dividend date which may actually give TNRG more support longer term.Below is the 5/18 PR and those who bought up till 5/17 and held thru 5/20 DOR are GUARANTEED TIPS shares as long as they dont sell before ex-dividend date as stated below.
TNRG Clarifies Dividend Plan
NEW YORK, May 18 /PRNewswire/ -- Tianrong Building Material Holdings, Ltd.
(OTC Bulletin Board: TNRG) announced today a clarification with regard to its
stock dividend of one share of Tianrong Internet Products and Services, Inc.
(OTC Bulletin Board: TIPS) for every four shares of TNRG common stock owned.
In order to be a shareholder of record as at May 20, 1999, purchases of TNRG
common stock would have had to been made no later that May 17, 1999. This is
due to the fact that ownership of stock purchased in the public marketplace is
based on settlement date (trade date plus 3). Therefore any shareholder of
record as at May 20, 1999 is guaranteed to receive the TIPS dividend.
Below are the NASD's policies regarding dividends where no Ex-Dividend
date has been set:
In trades that take place prior to the Ex-Dividend Date:
The purchaser will receive the Dividend.
The seller will not receive the Dividend.
In trades that take place on the Ex-Dividend Date:
The purchaser will not receive the dividend, but will benefit from the
lower price.
The seller will receive the lower price, but benefits in that he also
receives the Dividend.
In trades that take place after the Ex-Dividend Date:
The purchaser will not receive the Dividend.
The seller will receive the Dividend.
Therefore, as an example, any record holder of TNRG as at May 20, 1999 is
guaranteed the TIPS Dividend; however, if the TNRG shares are sold prior to
the Ex-Dividend date, the TIPS Dividend shares pass to the new purchaser with
the TNRG common stock purchased. In other words, for a TNRG shareholder to
receive his TIPS Dividend, he must be the owner of the TNRG common stock on
the TNRG Ex-Dividend date. The Ex-Dividend date will not be set until the
TIPS Registration Statement for the Dividend is declared effective by the
Securities and Exchange Commission.
James Tilton, president of TNRG, stated, "We apologize for any confusion
that may have occurred, however TNRG at no time stated or implied that TNRG
shareholders who sold their TNRG shares after the May 20, 1999 record date
would still be entitled to the TIPS dividend shares. The only fact that we
did state was that all shareholders of TNRG common stock as at May 20, 1999
would be guaranteed the TIPS dividend shares. Further, the only way that an
individual can receive the TIPS Dividend shares by purchasing TNRG common
stock in the public marketplace after May 17, 1999 is if another individual
sells their TNRG shares. For that reason we still feel that it was in the
best interest of TNRG shareholders who wished to acquire the TIPS dividend
shares to have purchased TNRG common stock in the public marketplace on or
before May 17, 1999 in order to assure that they would be shareholders of
record as at May 20, 1999."
Tianrong is a business development company that has set as its goal the
acquisition of businesses in numerous industries and plans to apply Tianrong's
management expertise to quickly grow value in the acquired businesses.
Tianrong has announced future stock dividends in three subsidiaries and on a
long-term basis may elect to issue stock dividends in other subsidiaries.
For further information contact investor relations at 800-641-5844 or
visit www.tnrg.com
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, which are intended to be covered
by the safe harbors created thereby. Investors are cautioned that all
forward-looking statements involve risks and uncertainties, including, without
limitation, the ability of Tianrong Building Material Holdings to accomplish
its stated plan of business. Tianrong Building Material Holdings believes
that the assumptions underlying the forward-looking statements contained
herein are reasonable, any of the assumptions could be inaccurate, and,
therefore, there can be no assurance that the forward-looking statements
included in this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as a
representation by Tianrong Building Material Holdings or any other person that
the objectives and plans of Tianrong Building Material Holdings will be
achieved.
SOURCE Tianrong Building Material Holdings, Ltd.
CO: Tianrong Building Material Holdings, Ltd.; Tianrong Internet Products and
Services, Inc
T A P has received 700K shares of TNRG and 1 mil shares of TIPS from the company for services provided for a period of 1 year. For a complete write-up on TNRG/TIPS and other Turn Around Picks and free membership go to T A P profile for url. |
