Small Business Capital Formation Forum – Not

On November 19th, the undersigned, representing the Small Agents Committee of the Securities Transfer Association, along with several other issuer/owners representing medium to small transfer agencies and market makers, met at a Small Business Capital Formation Forum in Washington with the Corporate Finance Division of the Securities and Exchange Commission. Among the issues discussed, was the difficulty that smaller issuers and transfer agents are having in obtaining approval from the Depository Trust and Clearing Corporation (DTCC) to participate in the Fast Automated Securities Transfer (FAST) electronic system operated by DTCC, as well as acceptance into DTCC eligibility, and ongoing trouble with the brokerage community accepting shares of these issuers for deposit and trading. These factors have increasingly become a barrier to the formation of capital by small business. It is believed that some progress has finally been made in removing some of the resistance to accepting new issues into the FAST system, which may then result in removing this impediment to capital formation in the economy.

Renegotiating Fees and New Contracts

As a reminder, your total monthly maintenance fees have been reduced to $250.00 per month for those of you having FAST/DWAC/DRS access. This includes certificated activity, book-entry/electronic activity, DRS (Direct Registration System) services for your shareholders, and unlimited Internet access to your account for shareholder lists and transfer activity reports.  For certificated issuers, without access to the FAST/DWAC/DRS system or our software Internet provider, our charge is still $75.00 for inactive and $150.00 for active companies. At this time, we urge you to contact us to sign a new three year contract, thus locking in even lower rates for the period of the contract.

We have recently partnered with a Profit Recovery System assisting in lowering our delinquent receivables. Some of you have received letters requesting payment. They are being distributed to accounts that have not made payment in over six months. Please call us if you require special payment plans to suit your needs at this time.

Referral Rewards

We believe that the best new business often comes from referrals made by existing good clients. To encourage such referrals, we are prepared to offer significant discounts in your fees for new transfer agent business that you refer to us and which we accept. Please contact our office for more information about this benefit.

Helping the Homeless in Phoenix

First American Stock Transfer continues to contribute to the community, particularly those who are or might become homeless. We continue to support the United Methodist Outreach Ministries (UMOM) New Day Center. The UMOM New Day Center houses families who are temporarily without a place to live. In addition, employees participated one Saturday morning in September in a fund-raising 6K walk/run in downtown Phoenix.

Also, this holiday season, we are joining with our new landlord – Fenway Properties – and their property manager, Arcadia Management Group, in contributing to a local non-profit outreach organization called Raising Hope.  Last year, Raising Hope collected blankets for the homeless population to give as Holiday gifts.  Out of this was birthed “Blankets of Blessing”.  This year the goal is to collect 1,000 new and clean used blankets for the homeless community in Phoenix.

The staff at First American Stock Transfer wishes to extend our warmest wishes to you and your families during the holiday season. May you have much happiness, good health and prosperity in the New Year.

With Warm Regards,

Salli Marinov
President/CEO