FormerXBC Inc XEBEQ

RE:RE:question for the board

[ZouZS3]

Rule 144A modifies SEC restrictions so privately placed securities can be traded among qualified institutional buyers with much shorter holding periods and no SEC registration in place. The idea is that sophisticated institutional investors dont need the same levels of information and protection that individuals require. Critics have noted a lack of transparency and unclear definitions of what constitutes a qualified institutional buyer. Concerns endure that Rule 144A may give unscrupulous overseas companies undue access to the U.S. market without SEC scrutiny. Rule 144A, however, was drawn up in recognition that more sophisticated institutional investors may not require the same levels of information and protection as do individuals when they buy securities. The Rule provides a mechanism for the sale of privately placed securities that do not haveand are not required to havean SEC registration in place, creating a more efficient market for the sale of those securities.