Decision Diagnostics Corp (DECN)

[loanranger]

"During the quarter ended June 30, 2017, we issued 370 shares of preferred series “D” shares for subscriptions receivable of $3,250,000. The subscriptions receivable has subsequently been received in full. The cash related to the subscription receivable was received by the investor from China and is currently held by the Bank of Spain. Release is expected in about 10 days, will immediately be rendered to the company by the investor’s agent."

Was the cash from China or is the investor from China, as it says?

So the company hasn't received the cash...it is being held by the bank of Spain. Do I have that right? Why would they issue the shares without the cash in hand? What could possibly go wrong with that?