How is this situation qualified as a pump and dump?
The last news release was both interesting and significant.
The only caveat would be if one chooses to believe that there is no investment firm now performing due diligence on their financials as well as their business plan. Unless that is a totally fabricated whopper it means that (a) a source of significant capital is preparing to do some kind of underwriting. (b) it means that no one is going to invite an investment company's due diligence unless they are prepared to deliver significant material evidence.
And if it is the "news" release intended to pump up the stock price it has basically failed. On the other hand it continues to build a fairly wide future path to revenues. The price of the stock has increased but not in a huge spike.
No one does this unless they are truly a big time organized crime outfit because the ripple effect of this kind of due diligence is usually performed by physically inspecting all the components and even doing private investigation on the principals involved. Only a big organized crime entity would have the resources to pull off a façade that would be believable to a securities analyst. It has happened before but usually by a sub rosa group, not a guy who is as visible as those people in EAPH.
Broker dealers aren't in business to launder money or abet criminal fraud. Its too expensive to even be IN the securities industry with a whole bunch of fiduciary liability risks for some company to go along with some small time penny ploy. PnDs are usually carried out without a broker dealer.
In the same pub release they mention several of the things they have announced recently and connected them all to the potential financing. The topical products that mesh perfectly with the original wound treatment base the original predecessor company invented or possessed.
For all the supposed dark clouds some have suspected hang over Neil Mellor the fact that he was in the Canadian Licensing bureau was one of the reasons I bot the stock. Its not what you know sometimes but who you know and he knows people that need to be known now. He would have influence in obtaining licenses for Easton especially in Canada. That was even before the mary jane land rush started. So all the things related to the pot growing project and getting a license in Canada are now all ducks in a row.
And the fact that all this, or these developments, have happened over two years time clearly removes this situation from the "pump" designation. "Pumps" don't happen in slow motion over years. They are designed to release ridiculously good information that gets the stock to spike and then huge volume as the perps sell. If at any time this could have been considered a PnD it would have been on the run up months ago. Yet EAPH wasn't alone as the emergence of the pot industry was a wide sweeping run up of a whole bunch of stocks and the news wasnt limited to just EAPH.
And since that run up there have been several announcements that weren't made prior to that run up so those news releases cant be connected to the prior run up either.
And while some MJ listings were suspended I haven't seen anything about any of the principals of those companies having done anything but failing to follow disclosure and reporting rules and regs not criminal fraud.
That could change but Ive been following this matter looking for news. If someone knows something let me know.
As for the "dilution" issue, in the case of a company with revenues diluting the stock would imply each share gets less of the profits from fixed revenues. Beyond that however, I would rather have a company pay their debts and remain debt free as opposed to taking on a whole bunch of debt service because debt service takes the profits off the top until they are consistently covered by revenues. That's not the easiest place to get to in a developmental company.
In fact those who complain about dilution, next will start complaining about the potential for a reverse split of the stock.
Ill even take that because the antidote to the dilution were all supposed to not like is to reverse split to reduce the number of shares so the fixed amount of revenues passes through fewer shares. I have had both good and bad experiences with reverse splits including current one that enables a company to get listed on the OTC because its looking to go revenue positive this year.
Lastly EAPH is suing a reporter for not looking at their documentation before writing a negative article. Its always a tricky situation to be given access to certain future prospects and not write about it but the biggest negative about EAPH was the two articles that did little but claim that "nothing could be verified".
And while there are no companies named in some cases (like the grower) one has to ask the question "what pump and dumper would
announce several different separate projects, as EAPH has, in which if any one of them was revealed to be bogus or fabricated it could blow the "cover" off the whole big scheme?". It would make more sense to have a single big thing of which keeping it under wraps would be a lot easier than several involving all different entities.
My 2 cents. One should make their own decision but the above is what my calculation is concerning the risks in this stock.
