March 21, 2003
Nutek Inc. Announces Update on
Certificated Share Ownership.
LAS VEGAS, Mar 21, 2003 (BUSINESS
WIRE) -- Nutek Inc. (NUTK) today
announced that several brokerage
firms have failed to deliver shares
to shareholders who have requested
physical ownership.
Commenting on the situation, Murray
Conradie, president & CEO, said, "We
are very concerned that 24
shareholders have contacted the
company complaining they cannot get
certificates from their brokerages.
This is a direct violation of U.C.C.
- Article 8, Sections 8-504, 8-507
and 8-508, which states the
brokerage is required to maintain
the shares corresponding to the
amount of shares it has established
in favor of the holders and is
required to comply with any
entitlement order by a shareholder
requesting ownership in certificated
form.
"Furthermore, incorrect and
misleading excuses have been given
to the shareholders by some of these
brokerages as to why the
certificates cannot be issued.
Several shareholders have even gone
so far as to close their brokerage
account to obtain delivery of their
shares, but to no avail. The
4,524,943 shares that are
represented by these 24 shareholders
were purchased through E*TRADE Group
Inc. (ET), Ameritrade Holding Corp.
(AMTD), Fidelity, Scottrade, Maxim
Group, Harris Direct, Charles Schwab
(SCH), Olde/H&R Block (HRB), R.J.
Thompson Securities owned by TD
Waterhouse Group Inc. (TWE) and
Securities America.
|
E*TRADE |
2,110,730 |
|
Ameritrade |
1,154,663 |
|
Fidelity |
666,700 |
|
Scottrade |
300,000 |
|
Maxim
Group |
180,000 |
|
Harris
Direct |
87,000 |
|
Olde/H&R
Block |
10,000 |
|
R.J.
Thompson |
7,950 |
|
Securities America |
5,000 |
|
Charles
Schwab |
2,900 |
| |
|
|
Total |
4,524,943 |
"Since our decision over three
months ago, on Dec. 2, 2002, that
ownership of the company's common
shares must now be evidenced in
certificated form under seal of the
company and signed by the president
and secretary of the company, only
17.9% of the shares held in the name
of Cede & Co. have been transferred
to the name of the shareholders.
Despite repeated requests, the DTC
has ignored these requests by the
company to exit the company from the
DTC clearing system.
"Real shareholder ownership is being
undermined by the failed deliveries
of these certificates and we suspect
there are many more shareholders who
cannot obtain physical delivery of
their shares, but have yet to
contact the company."
In conclusion, Conradie commented,
"The company strongly encourages
shareholders to immediately become
registered shareholders with the
company by ordering their share
certificates for delivery from their
broker dealer. This procedure
ensures authenticity of shares
purchased. Shareholders who have
requested physical delivery of their
shares, but are being denied
delivery, are to contact the company
immediately by fax at 702/262-0033
or e-mail at certificates@nutk.com."
Safe Harbor
Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this press release are
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) and information relating to
the Company that is based on the beliefs of the management of the
Company, as well as assumptions made by and information currently
available to the management of the Company. When used in this press
release, the words "estimate," "project," "believe," "anticipate,"
"intend," "expect," and similar expressions are intended to identify
forward-looking statements. Such statements reflect the current views
of the Company with respect to future events, and are subject to risks
and uncertainties that could cause actual results to differ materially
from those contemplated in such forward-looking statements. The
Company does not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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