Well - what I see is too much one-dimensional reasoning on the issue from the board tonight. Everything is either 'great' or 'doom'
Let's recap the facts, and apply a little reasoned thought...
1) The DTC has officially issued a notice they have suspended all services for BHUB except as a repository.
What does that mean?
It means that tomorrow, most brokers who use the DTC for clearing trades will probably not allow trading. Those who do NOT use the DTC, but instead have their own clearing house, may or may not follow suit. But to me it is clear that most brokers will not allow trading tomorrow.
It also means the DTC is doing its job - and Darrell seems to have been anticipating they would. Its the DTC's job to verify the certs they have are real, and if they are NOT real they can withhold their clearing services until the matter is cleared up.
The 15c211 will give the DTC the official information they need to identify LEGAL shares in BHUB. Anything left over in their inventory is not legal.... and the DTC will turn to the MM's and brokers to make them good - according to NASD and SEC guidelines. That means a buy-in on the open market.
I'm not absolutely certain, but I believe Darrell has already selected an MM to handle this delicate matter. For purposes of discussion, lets assume that MM is MURF. Once the DTC clears BHUB to trade again, they will direct all other MM's to trade ONLY thru MURF if they expect trades to clear.
MURF will be responsible to verify certs from each trade and make certain that an MM buying shares will know if they are buying the real thing.... or if they are buying the frauds. But only the 'real thing' from MURF will be acceptable to the DTC for settlement.
So MURF will make tons of money since they will be a part of each trade. Andat the end of the day, only those trades with real certs will be passed to the DTC.
The remaining trades will have to be settled broker-to-broker or MM-to-MM as per DTC/NASD/SEC guidelines (see the DTC warning)
That is the mechanism for removing the shares from the market for a buy-in.
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2)
As for Darrell Peterson - our CEO..... his destiny will be closely tied to his actions with the DTC, and with the NASD. He must present them with a credible explanation of how BHUB is legally structured, and he must work with them to resolve the illegal share issues.
Darrell's absolute 1st and 2nd steps are to file the 15c211, and to have a friendly MM willing to make just tons of money and follow DTC/NASD guidelines while acting on behalf of the company.
Darrell's 3rd step is to state the official BHUB plan to cure the share problem.... and then DO IT! Such as filing federal or state court cases against the guilty, working with the DTC to clearly isolate and identify the 'good' shares, and a willingness to work closely with the SEC and DTC to resolve the problem as efficiently as possible.
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4) Right now, MM's are showing up willy-nilly to play the BHUB game. That will end with the 15c211 being filed and approved, and the company MM taking charge of trades. MM's will likely have to 'piggyback' the 15c211 and agree to deal with/thru the company MM.... otherwise they can't trade the stock.
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and 5) Darrell, I think, understands that this is a time-sensitive issue. Without direct guidance from Darrell, the DTC will likely do nothing.... they want to have a time frame. Without a deadline, this will drag out forever.... the DTC won't like that
So I think Darrell will likely schedule something a few weeks out.... something to trigger a cert recall and sound the last bell for all the illegal trades to be finished/gone/settled. A cert recall that is 2 weeks or 30 days away will give the market enough time to adjust - and they will know they have a deadline.
A reverse merger with a cert recall? Ummmm..... I think Darrell may have something like that on his mind.
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Now I know all of that sounds dangerously close to a lecture. Please keep in mind that all of it is merely my attempt to put some flesh on the problem so it can be seen clearly. If I've misstated something, please understand I am no expert.
We all know what the problem is here. We need to keep in mind that we have the mechanism's in place to solve the problem.... and I think Darrell will not disappoint us.
Those who believe without reason... cannot be convinced by reason
