PayStar Audits Naked Shorting by Market Makers.Business Editors LODI, Calif.--(BUSINESS WIRE)--Feb. 18, 2003 PayStar Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :PYST), one of the nation's leading providers of Prepaid ATM products and services, Commercial Telephony Switch services, and content based Internet Kiosks announced today that they will advise corporate counsel to deliver a cease and desist order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. to specific firms and inform them to cease and desist Cease and desist (also called C & D) is a legal term used primarily in the United States which essentially means "to halt" or "to end" an action ("cease") and to refrain from doing it again in the future ("desist"). naked short selling Naked short selling, or naked shorting refers to the practice of selling a stock short without first borrowing the shares or making an "affirmative determination" that the shares can be borrowed. of PayStar stock. "PayStar stock is trading at significant low values and we are determined to take appropriate measures to reassure investors that PayStar stock is fully valued," stated W.D. Yotty, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of PayStar Corporation. "We are appealing to our shareholders to contact their brokers and request their PayStar share certificates. We feel that this will help prevent the naked short selling that is occurring with our stock." PayStar believes that by calling for delivery of these shares requiring conversion into certificate form, will force the short sellers to buy back the shares at appropriate prices. PayStar CFO See Chief Financial Officer. , Harry Martin, called for the audit of PYST stock trading during a specific trading day by comparing the DTC DTC See: Depository Transfer Check DTC See: Depository Trust Company DTC See Depository Trust Company (DTC). and ADP reports. The difference was nearly 250,000 shares of stock traded on that day that were not held by ten market makers, resulting in the artificial undervaluing of PayStar stock and directly affecting the price of bona fide shareholder's shares. "PayStar is not the only OTC company targeted by market makers," further stated Yotty, "we are considering joining the class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax that has been filed by other companies on behalf of their shareholders." About PayStar PayStar Corporation, a leading distributor of communications and financial services, provides its customers with an array of enabling devices through PayStar's Global Virtual Network. PayStar is comprised of three fully integrated divisions: PayStar GLOBALCash, Inc. supplying prepaid ATM and MasterCard products and services, PayStar InfoStations, Inc. providing Internet enabled kiosks and PayStar SHS, Inc. providing commercial telephony switch products and services. Internal sales efforts as well as mergers and acquisitions drive PayStar's growth. PayStar's global strategy centers on expanding its Global Virtual Network (GVN) to worldwide locations. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve a number of known and unknown risks and uncertainties that may cause the company's actual results or outcome to be materially different from those anticipated and discussed herein. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks with the regulation of the telecommunications industry. For more information, call PayStar at 877-769-7827 or visit their web site at www.paystar.com. |
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