Regulation s Share

[aderonke]

Hi all,
I am new to this site and i wonder if anyone can help or had similar experience with Reg s shares.
I was sold some shares in a company called City network inc about 3 years ago by a company called intersecurities based in Germany.
I was abit naive then as i did not really know what reg s shares were. All i was told was that i would not be able to sell the shares for I year by which time the share should have appreciated ant i can then sell them off if i wish.
The value of the shares went up initially and i gradually faded to nothing. and i had already classified these as a bad loss and inexperience.
A year ago i got a call from another company that they have taken over all the clients from the original company and they were goung to send me some documents to effect the change. I did not receive those documents.
On friday, i got a call from compamy called cookcp.com. Who are claiming be a company dealing in mergers and accusations. apparently my original stock were 1 for 20 and i now own 30000 stocks which they are willing to buy off me as part of the merger and accuisition. The stocks are now vallued at $2.25 .== $67500
broken down as follows
Stock Legend registration .20
Stock Legend Registration amount Due 6,000.00
purchase Price 67,500.00
Seductible Commission fee (2.6%) (1,755.00)
Refundable Stock Legend Regustration 6,000.00
Sellers Completion Sum 71,745.00

My reaction to this is this is another scam.
I have called the number given and the phone was answered by a lady who put me through to the guy who contacted me on friday.
I told him i needed to get the company checked out and that i have giveen the documents to my husband who is a solicitor to look over.
He said he would be glad for him to call him tomorrow to ask and answer any questions.

Any advice please


Many thanks

Aderonke

 

[raysor]

Don't do anything. Forget about it as a hard lesson. There is NO money in it for you. End of story.
Reg S just means those US shares cannot be bought or sold by US citizens (I wonder why??).
They can be 'legitimate'. If a US company wants to raise money through an AIM listing they will be Reg S (as AIM is not a listing on a recognised stock exchange). Again sounds odd, doesn't it? A US company coming to UK to raise money (OK so they say it is quicker and easier than raising money in US) Yeah, right!
Rule 144 (restricted shares) is a bit more complicated, so in the main avoid them like the plague. Although the people selling them to you will probably 'forget' to say they are restricted.
Don't get involved with people offering to "get the legend" removed, this will be a scam. If you have Reg S or Rule 144 restricted write the cost off as an expensive lesson. If anyone says a Bulletin board, Pink Sheet or OB stock has a price of x have a look at Yahoo Finance and check the historic prices and volume. If it has not traded or sparsely traded over the last few months or the traded volumes are insignificant, take the share price as being zero.