SAULT STE. MARIE, ON — (Marketwire) — 07/14/11 — Grid Cloud Solutions Inc. (PINKSHEETS: GRDC) today announced the cancellation of their previously announced restricted stock dividend and a corporate re-organization, owing to recent changes of policy of the Pension Financial Services regarding the clearing of stocks priced below $0.10 dated June 24, 2011.
In response to rules and guidelines from Penson–s Notice to All Correspondents — New Low Priced Securities Deposit Policy, the board approved the cancellation of the dividend previously announced for July 15, 2011 and the implementation of a new reverse split. According to a bulletin from Penson Financial Services Inc “PFSI,” effective June 24, 2011, PFSI has instituted changes to its securities processing policies and will no longer accept deposits of equity securities traded on the Pink Sheet or OTC Bulletin Board markets priced below $0.10. Additionally PFSI, on a case-by-case basis, may be restricting sale activity in such accounts, or even closing accounts when necessary.
Given that PFSI is one of the world–s largest clearing firms, management feels this policy is likely to spread throughout the industry and affect a growing number of shareholders.
“As GRDC has traded below $0.10 for some time now, we feel it is in our shareholders– best interest to cancel the restricted stock dividend announced for July 15, 2011, while initiating a 50:1 reverse stock split. This decision was based on our efforts to allow shareholders to be unaffected by PFSI–s new policies, while preserving the opportunity for the company to raise additional capital to meet its current growth strategy,” stated Danny Wong, CEO.
Management will update its shareholders with the effective date of the reverse stock split when it becomes available.
Grid Cloud Solutions Inc. offers comprehensive design, development and management services to the Biomass, Solar Thermal & PV and Wind energy industry. The Company brings decades of energy consulting experience to the marketplace. Management–s approach is based at rapid growth through partnerships, mergers and acquisitions using the principals– connectivity in the marketplace.
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Disclaimer: Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities. The matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the Company–s periodic reports filed with the OTCMarkets.com including the company–s Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
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