Thanks JB for your response and insight.
I'm all open to seeing many of the examples you mention as scenarios where Kodiak became a long term investor in OTC companies. The initial research I did did not seem positive at first glance. It seems as if companies sign up for the equity deal and initiate an S1 only to have it withdrawn soon after. Kodiak still receives their initial compensation fee which translates into dilutive shares at shareholders expense.
Regardless, being that this deal is dilutive in nature, I feel like the selling pressure created by Kodiak once they receive their shares in return for cash, will be an overhang on the stock as it moves forward. I'm open though to examples of Kodiak holding on tight to their shares for a long time. I just have doubts about that. I am skeptical of all OTC loan sharks, and I assume(for good reason) that they will sell at their first opportunity.
While this deal gives a cash infusion to nFusz and seems better than traditional toxic debt, that doesn't by definition make it a 'positive' agreement for shareholders. I would like to see the many examples of Very positive shareholder value created after these deals were signed.
You might answer that .15-.25 is a base created by Kodiak. True, but many here have invested because they feel this is destined for much higher prices- including an uplisting to Nasdaq or the like in the near future. Kodiak's ability to sell shares(in already illiquid stock) will have a negative effect once the share price rises to those levels again. Unless they are truly long term. Which I am skeptical of.
