Jetblack Corp. (JTBK) updates shareholders regarding deposits

Jetblack Corp. (JTBK) would like to update shareholders on the developments surrounding a location for shareholders to deposit their stock. At this time the company has exhausted all options. We have contacted almost all brokers on the OTC Markets provider list, along with calling any other broker the company can locate. Our shareholders are unable to locate a broker to accept our stock deposit, free trading stock or restricted stock. We have been told a couple things by the brokers. 

We have been informed that many do not want to take OTC stocks and Pink stocks. We were informed by OTC Markets that it is because we are on the PINK Markets and this is why. We are confused why a PINK market exists if brokers will not accept the stock. The brokers tell us that even if we uplist to QB or QX that they probably will not accept either because of other issues discussed below. 

A second issue that the brokers have discussed with us is we have very little liquidity in our stock. JTBK wonders how can there be liquidity if no shareholder can deposit stock for sale. No shareholder is able to offer stock at a reasonable price to the market that would interest a retail buyer. Currently the market makers have pegged the stock at a price that equals close to a 200 million market cap, which will probably not interest any buying. The company is unaware of any shareholders that have stock deposited at a brokerage, so the company is unsure how stock is being sold or shorted at a retail level. 

If none of our shareholders can offer stock at a reasonable price that gives upside to a retail buyer, no buying will happen therefore no liquidity. With no liquidity, it will not matter if we are on the QX, QB, or Pink Markets. No clearing firm or broker will want the liability to take our stock in. The company has been given information such as brokers make no money on selling stock for shareholders so why would they absorb all liability. 

In the past firms such as Etrade have been fined millions of dollars for selling unregistered shares and not properly varying exemptions for the sale. For this reason a blanket policy has occurred which prevents the transfer in of securities such as JTBK from a transfer agent or another broker. Oddly, JTBK is allowed to be bought and sold at a retail level on their platforms without any disclosures stating they block the transfer in. Effectively shutting out the shareholders from the market along with the companies ability to operate. The company is unaware of any investors that would enjoy investing in the company, waiting a year or two until restrictions expire just to not be able to deposit their stock anywhere, essentially for a complete loss. 

The company is still evaluating what to do. While our shareholders are very very angry and upset, which the company completely understands and feels the same. “It’s an ugly situation,” stated Daniel A. Goldin, Chairman and CEO.