My experience is they use P&Ds as insider enrichment schemes until the stock is driven down to no-bid - at which time they issue a RS and start all over again. The fact that anyone falls for the nonsense is beyond me.
I monitor a few OTC stocks, among them are:
1. An SEC Registrant traded on the OTC, which promoters claimed to be a $17 stock, soon to receive a billion dollar buyout. They raised money in an offering at $.10 cents per share, then the CEO filed a Form 15, and hasn't been heard of since. They recently changed their name with the Nevada SOS, the stock is barely trading but when it does it's in the $0.002-$0.005 range.
2. Another SEC Registrant traded on the OTC, promoters and IR claimed millions of dollars in the bank, multi-millions in contracts, uplisting off OTC. Every year the CEO promises huge contacts with the same name brand. Currently they have $6500 in the bank, no revenue, no documented contracts with anyone including the name brand, and trades at about $0.0005, still on the OTC - no uplisting.
3. This one is not an SEC Registrant, it's an unaudited limited info OTC stock trading at about $0.0012 with a visible promotion in effect. In a PR they claimed to have a contract with a very well known name brand which is a household name throughout the world. The fraudulent press release prompted the name brand to issue its own statement denying any relationship, stating there was no such contract, and saying they were reporting the fraudulent use of their name to the SEC. Yet it's still being termed a "legitimate" company.
