Category: Uncategorized
- Published: 29 November -0001
News Release: GeneMax Corp. Announces Update on Naked Short Selling Evidence
GENEMAX CORP. ("the Company") (OTC Bulletin Board: GMXX) (Frankfurt: GX1) announces the following update information regarding naked shorting selling of the Company's common shares:
GeneMax is a "certificate only" or "custody only" issuer requiring physical certification of Company ownership for all share transfers. Furthermore, no valid or legally enforceable transfer of GMXX stock can be made through Depository Trust Corporation ("DTC") and/or Canadian Depository For Securities Limited ("CDS") or their nominees. Both DTC and CDS have voluntarily cooperated with the Company to remove GMXX stock from electronic eligibility. On August 2, 2002 the Company's transfer agent confirmed that there were only 265,654 trading common shares of GeneMax Corp. Notwithstanding this fact, the Company's proxy agent has confirmed that there were 400,820 reported shareholdings of record listed as held by broker dealers and clearing agents. This represents a discrepancy of 247,347 shares that were not delivered by naked short sellers. Therefore, based on the available information, as of August 2, 2002, the trading float was oversold by 151%.
Naked short selling has increased in magnitude since the August 16, 2002 press release. As of October 11, 2002, the Company's transfer agent confirmed that there are only 265,734 trading common shares of GeneMax Corp. Notwithstanding this fact, the Company's proxy agent has confirmed that there were 714,174 reported shareholdings of record listed as held by broker dealers and clearing agents holding a net deficiency of 592,495 shares that were not delivered by naked short sellers. Therefore, based on the available information, as of October 11, 2002, the trading float has been oversold by at least 268%.
The Company confirms the following facts:
As of the date of this press release no GeneMax share options have been exercised.
A total of 80 shares eligible for sale under Rule 144 have been converted from restricted to trading status from August 2, 2002 to the date of this press release.
As at the date of this news release, the Company has issued and outstanding common shares totaling 15,160,119 with only 265,734 free trading common shares. The Company confirms that of the total 14,894,785 restricted shares issued, 14,871,844 shares have not been, or are ineligible to be pledged, borrowed, or hypothecated or used in any way for any normal short sale coverage.
Notwithstanding the fact that the Company had only 265,734 free trading shares during August and September this year, the official OTCBB website reports trading volume of approximately 1,100,000 GeneMax shares per month during these months. In addition, GeneMax shares trading from October 1-17, 2002, 2002 totaled in excess of 1,800,000 shares with average daily volume of almost 140,000 shares during the first half of October, 2002 (53% of the trading float daily).
The increase in naked short selling has left the Company with no alternative but to increase its litigation efforts to combat unfair and manipulative trading practices.
About Naked Short Selling: Under a naked short sale of stock, short positions are not declared, shares are not borrowed to cover the short sale, and shares are sold without delivering the stock to the purchaser. Real shareholder ownership is being undermined by naked short sales of stock and failed deliveries of real certificates that artificially inflate ownership and devalue the price of securities.
Broker dealers and clearing agents who appear not to have received GeneMax share certificates on behalf of their clients who appear have purchased their shares from naked short sellers are listed below for the record date of October 11, 2002. The Company encourages shareholders to become registered shareholders with the Company by ordering their share certificates for delivery from their broker dealer. This procedure ensures authenticity of shares purchased by the public.
GENEMAX CORP.
Record Date: October 11, 2002 Failed Share Deliveries
Ameritrade Clear (102,114)
Iclearing LLC (83,205)
Merryll Lynch (55,066)
Charles Schwab (40,158)
Octagon Capital (26,408)
Legg Mason Wood (24,100)
Nations Financial (22,220)
Salomon Smith BA (17,110)
Scottrade Inc. (15,925)
National Bank Financial (15,763)
Prudential Secur (14,752)
National Investor Services (14,668)
Pershing/Division (14,393)
Penson Financial (12,755)
First Clearing (10,558)
Brown & Company (9,170)
A.G. Edwards & (8,267)
E*Trade Securities (8,218)
U.S. Clearing (8,154)
TD Waterhouse (8,103)
Emmett A Larkin (7,500)
W.D. Latimer Co. (6,500)
Morgan Stanley (5,572)
Haywood Securities, Inc. (5,180)
BS Warbur LLC (5,050)
Refco Securities (4,000)
Sterne Agee & Leach (4,000)
RBC Dominion Securities, Inc. (3,190)
Bear Stearns Securities (2,540)
American Express (2,308)
Goldman, Sachs (2,150)
Janney Montgomery Scott Inc. (2,000)
Robert W. Baird (2,000)
Yorkton Securities (2,000)
USAA Brokerage S (1,900)
RBC Dain Rauscher (1,886)
CIBC World Market, Inc. (1,634)
Wachovia National (1,500)
Wolverton Securities (1,500)
Stifel Nicolaus (1,400)
BMO Nesbitt Burns Inc. (1,014)
ABN Amro Incorpo (1,000)
H&R Block Financ (1,000)
Instinet Clearin (1,000)
Odlum Brown Limited (1,000)
U.S. Bancorp Inv (1,000)
Raymond James Ltd. (994)
Deutsche Bank Securities, Inc. (956)
Investec Ernst & Company (820)
SWS Securities, Inc. (635)
Fiserv Securities, Inc. (625)
Global Securities (606)
Brwon Brothers (530)
Commerbank Capital (500)
Computer Clearing (500)
Georgia Pacific (500)
Scotia Capital Inc. (500)
Smith, Moore & C (500)
Wells Fargo Inve (500)
Multiple Retirement (490)
Spear, Leeds & Kellogg (407)
Strong Investmen (350)
Baker Boyer Nati (300)
Kirkpatrick Pett
