RE:Mineworx LetterI own 3 Million MWXRF in the usa. Therefor, from what I was told I can't be involved in this rights offering this is set up for only Canadians or if I try, there will be problems as I was told from another usa shareholder last offering. The person still can't get the shares.
This is some of the problems that MWXRF shareholder went through:
"For the shares that were distributed in the Rights a year ago, those shares are the ones that have the "restricted legend". They show up in your brokerage account under a different symbol and show a value of $0.00. I can see the number of shares, which is correct and I can also see the name of the company which is correct (but does say "Restricted" after the name).
These restricted shares have a couple different ways to clear the restricted legend. The easiest is to hold them for 12 months or longer after they were issued. Then you contact the brokerage and ask them to help you get the restricted legend removed. Some brokerages will do this, but many will not.
To further complicate matters, the Rights were issued to brokers using something called a "Master Certificate". So that means that Fidelity (for example), gets a single certificate which is for the grand total of all rights shares for all its customers. Then, it is up to Fidelity to credit each account properly with the number of restricted shares. However, when you want to clear the restricted legend, they must break out my shares from the Master Certificate. This is a mail process between Fidelity and the agent for Mineworx (ComputerShare of Canada). It is apparently slow and they can only do one at a time.
Once that is done and they have a separate certificate just for me, then they can determine whether they can help me get the restricted legend removed or whether I need to transfer my account elsewhere to another investment company that may do this type of thing. To top it all off, some companies won't work with low priced stocks...
Greg told me perhaps 3 weeks ago that these NewCo shares for the spin-off will also have a legend for non-Canadian shareholders. So, I'm assuming this will be a similar thing. I'm hoping that is not the case, but unsure at this time.
Just to clarify - I have no intention to sell shares now or in the near future. However, all of this needs to be cleared up prior to a future sale, so it does need to be done. I have about 2M shares now, but only had about 500,000 at the time of the Rights offering."
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I say from all I know is that bottom line, I'll lose 1 and one half million shares from my 3 million mwxrf shares from what I've been told. I'll call TDAmeritrade tomarrow. But the last time I asked TD about removing the restricted legend, they said the company has to remove it. Greg said he does not do that. So I have a problem.
Any ideas?