written by reader Cant exercise PW rights (US)

By Dutta, January 13, 2021

Tried to do it with my broker and got this notice. Would appreciate it
” Regarding the exercise request on Power REIT entered today. The request was unfortunately not able to be processed due the following:

Completion of the exercise would be facilitating a direct investment of funds into a cannabis company which is prohibited by NFS’s policy on Marijuana related businesses, which is based upon Federal guidelines.

As a result this offering this will not be open to accounts that hold these
subscription rights.”

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Travis Johnson, Stock Gumshoe
January 14, 2021 1:48 pm

That’s surprising. What broker do you use?

My broker didn’t recognize it as a Corporate Action in my account, so wouldn’t process it for me online, but they did forward the paperwork as requested by PW, so I did receive my Rights Offering paperwork in the mail and sent it back in with a check to exercise the Rights. Feels like a bizarrely old-fashioned experience at this point, we’ll see if that works out and whether those shares show up properly in my brokerage account or require further action (if the stock is below $26.50 when the offering closes, or not long thereafter, it will turn out to have been a mistake).

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