In July 2011, Depository Trust Company placed a chill on Healthnostics' stock. This was done without notice or explanation, and HNSS commenced legal activity to determine the cause and reverse the decision. Recent litigation by other companies has succeeded in compelling DTC to provide explanations and recourse for its actions, and HNSS is now aggressively pursuing that path. Brokerages use DTC to clear stock trades, but not exclusively. As a result the DTC action has not impeded daily trading in HNSS, but it has prevented the Company from completing contracts that involved payment in stock. Specifically, the DTC action has prevented the Company from completing its capital intensive projects to build its planned MicroFill machine. Once the DTC matter is resolved, or other capital options are secured, the MicroFill roll-out will resume, or, in the alternative, the Company may consider selling the technology.
Meanwhile, the Company continues to pursue less capital intensive opportunities to create value for its shareholders, including the recently announced Crowdfunding platform that will tap into the new JOBS Act opportunity. The JOBS Act is the most revolutionary change to securities law since 1934, and HNSS, having initiated development last fall, is uniquely situated to offer entrepreneurs access to capital markets.
On April 4, 2012, the Company announced a Special Distribution in agreement with InternetArray, Inc. (INAR.PK - News), whereby Healthnostics shareholders of record on April 30, 2012 (later extended to May 10, 2012) will receive one share of INAR for every three shares of HNSS stock held. The distribution date for the Special Distribution of the INAR shares is May 31, 2012. An added benefit to HNSS shareholders in the Special Distribution was announced by InternetArray on April 10, 2012, when its Board of Directors authorized the company to file Form S-1 registration statements to spin-off its wholly-owned subsidiaries BidSellBuy, Inc., and Premier Gold Traders, Inc., for the benefit of its shareholders. As such, HNSS shareholders receiving the Special Distribution shares will also receive stock in each of those spin-offs. It is expected that these will operate as fully-reporting companies listed on the Over the Counter Bulletin Board ("OTCBB").
This press release may contain certain statements that are not descriptions of historical information, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. These forward-looking statements refer to matters that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated.
- Depository Trust Company