Buying ALGA Stock Today and In The Future
The Company has been contacted by a few investors experiencing difficulty purchasing ALGA stock. The difficulty is a result of the Company not being eligible for the Depository Trust Company (DTC) electronic book entry services. Several brokerage firms hesitate to process orders where the stock issuer is not eligible for DTC services. The Company has applied for DTC electronic book entry services (see more detail below) and anticipates this difficulty to be resolved with in the next few weeks.
While online purchasing of ALGA stock may be blocked, a telephone order is still possible. The broker on the phone may advise against the purchase, but still process the purchase.
Brokerage firms that specialize in micro cap public stocks and maybe more comfortable with trading of stocks not currently eligible for DTC electronic book entry services include: Apline; Acap; Scotsdale and Spencer Edwards.
The electronic trading of securities quoted on the OTC Pink Market Place can be enhanced when a company’s stock is eligible for electronic book entry services offered by the Depository Trust Company (DTC). Electronic book entry makes the ‘settlement’ of stock trades faster and more reliable than a ‘settlement’ conducted outside DTC’s electronic book entry system.
DTC eligibility can be difficult for companies with stock not registered with the SEC since the DTC cannot rely on the SEC’s oversight regarding the ‘free-trading’ status of stock. Companies not registered with the SEC must provide the DTC with a means other than SEC oversight to reasonably insure the genuine ‘free-trading’ status of all traded shares.
The DTC sometimes scrutinizes the issue of stock by companies not registered with the SEC and may ‘chill’ or slow the electronic book entry services provided in the trading of a company’s stock in order to mitigate the potential that stock not genuinely ‘free-trading’ could be inadvertently traded.
Algae International Group, Inc. is not under a DTC chill. However, as the previous bio-diesel operation slowed down and before the American Seed & Oil Company operation got underway, the Company fell behind in meeting all administrative requirements necessary to maintain a transparent public stock quotation. As part of that lapse, Algae International lost its DTC eligibly for electronic book entry. In the course of 2014, management has updated its public disclosures and achieved ‘current information’ status with OTC Markets and is now working to reinstate its eligibility for full DTC services to include electronic book entry.
The Company has engaged M. Richard Cutler, Esq. of Cutler Law Group to manage the DTC eligibility application process. Mr. Cutler has extensive experience in general corporate and securities matters. He is a graduate of Brigham Young University (B.A., magna cum laude, 1981); and Columbia University School of Law (J.D. 1984). Mr. Cutler was a Harlan Fiske Stone Scholar at Columbia and the Managing Editor of the Columbia Journal of Law and Social Problems. Mr. Cutler was admitted to the State Bar of Texas in 1984 and the State Bar of California in 1990. After notable experience at prestigious Texas and California law firms, Mr. Cutler founded the Cutler Law Group in 1996.
The Company’s application process is well underway and DTC eligibility is anticipated as early as within the next 30 days.