Expert: Steven Taylor - 12/13/2009

Question
QUESTION: Hi, Steven

Kindly advise me, i invested my money in BH.To Brain hunter, company, i got invested $17000 in shares, at the rate of c .03, just two days ago company is delised and shares suspended, by Toronto stock exchange, please advise me how i can get back my money, i am very new in this field, and i have only this amount my savings,
Thanks for your co-operation, waiting ur reply,

Tanvir Mississauga,

ANSWER: Unfortunately, I am sorry to say, you can't. You bought the stock and took your chances, and buying a 3 cent stock in horrible financial condition is a huge chance. Now that the company is bankrupt, it is highly unlikely that any money will be returned to common shareholders, as the company's debts are much higher than its assets.

Since you are new to investing, I highly recommend you learn more about how the market works and what kind of investing is more suitable for you. A good book to start with for beginners is "The Wall Street Journal Guide to Understanding Money and Investing" which is available in most every book store and library.

The Ontario Securities Commission also has some good information for investors which is available online at: http://www.osc.gov.on.ca/en/1427.htm


---------- FOLLOW-UP ----------

QUESTION: Hi, Steven

Thanks for reply,kindly i want to ask u, when Brain hunter BH, share r suspended, there is any chance in future, after one month, 6 month, or one year, the company relisted or company sold out to some one else, and my same shares remain in this position,please advise me if i wait even long time, can i get back my losing money, there is any chance?

Thanks, for co-operation

Answer
Unfortunately, I don't think any of those positive scenarios are likely in this case. When a company is delisted, they can relist and resume trading on another exchange. In the case of Brainhunter, they have filed for court protection (bankruptcy#, and they will not relist elsewhere while under court protection. If you reviewed the most recent financial statements of the company filed in early August, you can see they were in serious financial difficulty, which is why they were trading for 3 cents a share #which, considering the huge shareholder's deficit on the balance sheet, was very overpriced - 3 cents a share isn't always cheap#. Someone will likely buy the assets of the company #not the stock#, but creditors will have to have their debts satisfied first. Since the assets are worth less than the outstanding debt and liabilities, common shareholders will likely receive nothing.

In rare cases, common shareholders sometime receive a small something #usually warrants in a new company which have only nominal value), but I think it is highly unlikely you will receive anything of value here, and certainly not the 3 cents per share you originally paid. At this point, all you can do is wait, watch and hope, but realistically, you should assume your entire investment is gone. Sorry - I wish I had better news for you.