RESTON, VA., August 7, 2003 (PRIMEZONE) -- Global Explorations Inc (Pink Sheets:GXXL) is requesting that all shareholders immediately request a physical share certificate for all shares from there stockbrokers.
"We are frustrated by what we believe to be 'naked shorts', which has driven down our valuation substantially. We are beginning to institute an overall restructure of our company in order to maximize the shareholder value and financing opportunities."
Time is of the essence in this regard, states Atul Mehta, PR manager for Global Explorations Inc.
In a 'naked' short sale of stock, the short positions are not declared, and the shares are not borrowed to cover the short sale. The shares are actually sold without delivering the stock to the buyer. This effectively creates 'virtual' shares that are not backed up by real shares, thus artificially inflating ownership and devaluating the price of the stock.
On a side note, the company is considering 'custody only' trading. The investor continues to use their broker for purchases and sales and would request the physical delivery of all of their shares. The certificates received by the Company's transfer agent for selling by an investor would be cancelled and a new certificate for an equal number of shares would be issued in the name of the buyer. Therefore, no certificates would be issued in the name of Depository Trust Company or CEDE & Co., and Global Explorations Inc. shares would no longer clear through the DTC system. This procedure is one way to ensure buyers that share purchases will be from bona fide stockholders and not from naked short sellers. It would be in the best interests of all shareholders to ensure that they participate in this 'custody only' trading since the share price will more properly reflect the company's status.
The Company has not yet made a final decision regarding the implementation of 'custody only' trading and it intends to seek prior approval from its stockholders.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements