IRVINE, Calif., Feb. 21, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCBB:UBRG), a publicly traded independent diversified energy company, announced that it is making positive steps in working directly with the Depository Trust Company and moving forward through its DTC Participant in its efforts to obtain its full DTC eligibility.
The Company has been in direct discussions with the DTC's Office of Regulatory Compliance to resolve some compliance issues to have a temporary, partial "Chill" or electronic deposit restrictions removed from its stock, that was imposed in July of 2011. Full details of this matter were discussed in a Shareholder Letter filed in a Form 8-K with the SEC on January 11, 2012. The Company has also engaged the services of a DTC Member or Participant to resubmit its application to the DTC in its endeavors to obtain the approval of the DTC to become fully "DTC" eligible again. The temporary restrictions do not have any effect the Company's normal business operations, and the stock still trades freely in the market through full service brokers and some internet brokers as usual without restrictions.
The Depository Trust Company (DTC) is a subsidiary of the Depository Trust & Clearing Corporation DTCC, and manages the electronic clearing and settlement of publicly traded company stocks and other securities. Securities that are eligible to be electronically cleared and settled through the DTC are considered "DTC eligible". This electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for investors.
According to the DTC, a "Chill" or suspension is an action that is sometimes taken by the DTC when there is either a "Corporate Action" taken by an issuer, or due to "temporary service problems" of the transfer agent. It can also be triggered by a large stock dividend, a forward stock split or reverse stock split by an issuer.
Universal's President Vince M. Guest says, "We feel very positive about working directly with the DTC's Office of Compliance to restore our full DTC eligibility. Universal's stock has been "DTC eligible" for many years in conjunction with our transfer agent. It appears we are primarily addressing a temporary compliance issue, and they have been very cooperative in responding to our calls and inquiries regarding the matter. Our DTC Participant is working directly with the DTC to manage the process for us to resolve any concerns regarding compliance issues, and to gain the DTC's approval to remove the partial electronic restrictions on our stock. We believe, although we cannot guarantee, that once all of the required information is completely reviewed by the DTC's compliance department, the "Chill" will be lifted and they will restore our full DTC eligibility. However, the stock trading volume and liquidity are still at reasonable volumes in spite of the temporary restrictions. We look forward to our stock price improving soon, as we continue to make positive steps to grow the Company. We will continue to update our shareholders on our progress in this matter."
About Universal Bioenergy Inc.
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
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Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements 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. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.