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Bullboard - Stock Discussion Forum Ventura Cannabis and Wellness Corp CVHIF

Ventura Cannabis and Wellness Corp is a vertically integrated, California-based products cannabis company. The company is currently building out its distribution channel through revenue-sharing agreements with owner-operator of cannabis dispensaries to ensure it's products get premium shelf space. The Company plans to target four segments in the U.S. cannabis and CBD market with products suited... see more

GREY:CVHIF - Post Discussion

Ventura Cannabis and Wellness Corp > Confirmed - CVHIF Can be Sold Using Canadian Brokerage Acct
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Post by davgro on Feb 05, 2021 1:42pm

Confirmed - CVHIF Can be Sold Using Canadian Brokerage Acct

With the help of a Canadian Securites Lawyer and some effort on my part, I was able to be approved to sell my shares in CVHIF through my TD Direct Trading Account on the US OTC market.  FYI...I do not have a US address or account with a US brokerage.  Here are the details:

First step is to get a PDF copy of the Cease Trade Order (CTO) for Ventura Cannabis & Wellness Corp off of the Canadian Securities Administrators website:

https://www.securities-administrators.ca/

If you review the CTO you will see the following:

Despite this order, a beneficial securityholder of the Issuer who is not, and was not at
the date of this order, an insider or control person of the Issuer, may sell securities of
the Issuer acquired before the date of this order if both of the following apply:

1. the sale is made through a “foreign organized regulated market”, as defined in
section 1.1 of the Universal Market Integrity Rules of the Investment Industry
Regulatory Organization of Canada; and

2. the sale is made through an investment dealer registered in a jurisdiction of
Canada in accordance with applicable securities legislation.

You must then contact a trading representative at the Canadian brokerage were your CVHIF shares reside (in my case TD Direct Trading).  Inform the rep that you want to sell your shares in CVHIF on the US OTC but a CTO exists.  He will need to get approval from his compliance department before you can execute the trade.  I was required to provide him with the following:
  • Copy of the CTO
  • Acknowledgment that I was not an insider with the company
  • Copies of trade confirmations for all shares of CVHIF residing in my account(s)
  • - this included original trade confirmations for V:CXV and V:BLVD

Once they had this information it was sent to the Compliance Department.  I received approval within 24 hours to sell my CVHIF shares.  A note was put on my trading account to this effect so that I could call in and speak to any trader to execute my trade for me.  You will not be able to execute the trade yourself using your online account.  I was required to sell my shares as a "market" order and not a "limit" order.

I hope this will help anybody who has a desire to liquidate their CVHIF shares.  I do not know how this will affect VIBE shares/warrants that I am supposed to receive as a result of the VCAN transaction as nothing has yet appeared in my TD trading account in that regards.
Comment by lscfa on Feb 05, 2021 1:55pm
Don't sell your CVHIF shares. There may be another distribution before co. is finally wound down.
Comment by davgro on Feb 05, 2021 2:12pm
It may be benficial to sell some or all of your CVHIF at current prevailing OTC prices.  The stock has sold on the US OTC for about USD 0.09 all week.  Or approximately CAD 0.115 per share. Does this not exceed the per share return from the VCAN transaction ?  I can not believe that any future distribution before the company is wound down will amount to much. I am also considering ...more  
Comment by lscfa on Feb 06, 2021 10:46am
Good to know but only being able to sell at market is the problem.    
Comment by dileas48s on Feb 06, 2021 11:18am
It does explain the price action yesterday though.
Comment by BubbaNeedsMoney on Feb 06, 2021 10:52pm
WOW! That is great work and advise!! The only thing that sucks is (1) Not being able to do it yourself. and (2) Being forced in to a market order instead of a Limit. Both are major bummers. Especially the Limit restriction. A limit order is what I was betting my live on.... Anyway, I love the research. Thanks! P.S. Have you sold any yet? How many at what price? Thanks!  
Comment by davgro on Feb 07, 2021 11:35am
As a follow-up to my original post, I contacted TD Direct Trading again about placing a trade on the US OTC of my CVHIF shares.  I got clarification that I could place my order as a limit order but that it must be a day order only.  I suspect that it must be a day order just in case something changes with regards to the CTO. I have not sold any of my CVHIF shares yet but will now ...more  
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