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Likely because the SEC rained on the parade before the dumping of the 625 million occurred. Just look at the "Q". He exchanges $328K in stockholder debt into 25 MM prefs...and then converts 5 million of those prefs into 125 MM commons. Why? What was he planning on doing with them? My guess is that once the "PR" on the 17th dropped he was going to sell into the "pump" hoping for 0.01 on the low side. That would have netted him a cool $1,250,000 for a $328K investment.
Then he would still have 500 million in common.
But the SEC stepped in....
It always amazes me that some can be blinded to the numbers staring them in the face? He essentially converted his $328K investment into 625 million shares of common stock ultimately...SIX times the existing float!!!!
If that doesn't upset even the most loyal supporter, than nothing will.
You're right. Nobody can know anything for certain other than volume trend and price trend. Welcome to the greys.
Nonsense. All that we are seeing is the typical trajectory of a suspended pink on the greys. Falling volume, falling liquidity...and shortly behind, falling price.
If his attorney is supporting him emailing investors directly...I suggest he get a new attorney.
Jaime - I am not saying that JR is lying. First if the email is real and second if it came actually came from JR then I am saying it is highly misleading. He could have a form 15c2-11 sitting on his desk and is filling in some of the blanks with a lead pencil, he could have called up a MM and asked them what they require, any number of things that make the statement "in process" technically true but highly misleading. That's why suspended pink CEO's throw it out there. It's not a lie if they are even reading the form.
But it certainly is highly improbable that they have a MM on board, that they have an SEC "note" that it was all a big mistake, etc.
Everyone will want to read the tea leaves according to their interest. For anyone heavily invested they have to read it as optimistically as possible....and that's what a pinkie CEO is banking on.
In order to judge just how realistic this might be for KMAG, I suggest you go and read the message boards of suspended pinkies of the past. They ALL have some communication via PR, email, phone call, twitter message, blog, etc. that they are "preparing their 211" or are in discussions with a MM. This is all on the first page of the suspended pink play book under the tab "what to say when you get suspended".
And has many have pointed out, not a single one has gotten back to the pinks and been successful.
Nada.
JR can chart a new path and release a PR with more detail than ever before seen by a suspended pink....he'd convert me if he did. But I think the most you will see, if and when it comes, is "we are cooperating with the SEC", and/or "we are working diligently to address their concerns", etc. etc. in other words meaningless statements....what else would they say?
They say the sec dose not move fast but in the case of kmag since they found nothing criminal
You have no way of knowing this...one way or the other.
SEC doesn't move that fast. They are horribly slow.
It was not delisted. Suspended for 10 days. SEC cannot suspend any longer than that. They can also not "delist" or revoke a stock that is under SEC investigation. They can take no action until the investigation is complete and SEC Adminstrative law judge rules on sanctions.
So why doesn't he PR this? Something is fishy? Is he selling his coverted prefs to get back some of his "loan"? If I had a buck for every time a suspended pink sheet CEO said we are in the process of completing our 211, or, we are talking to a MM, etc. etc., I'd be rich.
How about the PR with the details, timeline, etc.etc. this kind of info is cheap.
No MM is going to sign off on a suspended pink while under investigation by SEC. Because it will be their liability.
These types of emails, if they are from JR, just continue to tell me this is the same 'ol grey sheet game.
The thing about R-PAC is that according to the PR's KMAG licensed r-PAC back in 2010 for manufacturing and sales. In otherwards, about as close to "selling" the business as one can get. It looks like an overall licensing agreement and not just a distribution agreement. It would be nice to know the terms, royalties?, one time licensing payment? R-PAC does not market the stuff as KMA Global products as far as I can tell...as you would normally see as a suppliers rep. It looks like r-PAC products. So is the patent the only thing that Reid has? Is the patent owned by Reid or KMAG? Is the Hong Kong address really just r-pac's?
Lots of questions...any good answers?
I am sure he will PR that "formal note"
lol...
Yes read earlier. Some had their trades reversed. Someone forgot to hit "0" the necessary number of time. Problby meant 0.004 and 0.0045
Looks correct to me. It is bouncing around 0.005 but shows the fat finger trades earlier.
When would you expect them by before you started to wonder?
i doubt he could even put out a PR a the moment without SEC approval.
The SEC does not 'approve' PR's. Never have, never will.
Nothing is stopping JR from issuing a PR....except perhaps his lawyers.
It won't be the last time either for KMAG. There was another suspended pink that had a fat finger trade about two or three days into the suspension. A year later when they submitted their S1 it showed a trading range that included that specific trade to make it look like things were good at some point after returning the to the greys. The SEC called BS...and forced them into another amendment.
Lol.
Look at the amended quarterly report....page 2
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=91537
Yes, Jeff and his lawyers know exactly what the issues are.
Yet...the float went up almost 700% in the last 18 months or so...
...no dilution here....
Wait until you start seeing the trades that total less than the commission in a few weeks when the volume has started to dry up. The greys are nothing if not entertaining.
Those types of trades baffle me since there is no MM involved. Is it a manufactured trade between two traders with an odd lot number to get a match at a certain price? Or is it some odd remander lot that a broker is trying to deal away?
I understand, I was referring to the company supplied information to the MM for the DD package etc. but you did a much better job of getting the point across.
Well they could....and then send it to a MM. Where it would sit, and sit.....and sit.
Compiling the information is not the long pole in the tent. The 211 needs to be signed off by a MM. No MM will sign off on a company's 211 while it is under investigation by the SEC. The best outcome for KMAG would be a no action letter, but it is a year, to years, away from that. SEC investigations do not go quickly.
"PR tomorrow"...
It's like the sign above the bar "free beer tomorrow"
Well considering that the number of trades on day 2 was less than a third of day 1 and share volume was less than half of day 1...I would not hold my breath. IMO of course.
Every pinkie is "preparing" to uplist.
Exactly. Think about the order of the steps and typical timeframes.
1) audited financials back years. (Months)
2) SEC "no further action letter" (many months to years)
3) find MM to sign off on 211 (months)
4) FINRA approval of 211 (months to years)
4-6 months is extremely optimistic...
Lol.....And when they stop buying liquidity goes down the toilet
Really?
Questionable PRs
Revenue from unknown customers
Unaudited financials
....sure, take that to the bank.
I agree. But some of the long and strong "in the know" have a PR coming today...
Waiting.
...I do expect a "we are cooperating with the SEC" type of PR at some point so the pumpers have some cotton candy to munch on.....but zero nutritional content.
I'll let others read it for themselves. I don't need to interpret. The investigation started long before the suspension, not after. As it is now public, it moves into a new phase.
You need to spend more time bugging JR for a PR, instead of asking for readily available documents on the Internet.
The SEC does not make suspension decisions lightly or quickly. They do so only when their investigation uncovers real substantial issues. They do not inform the public of the investigation because it could irreparably harm existing shareholders if they decide not to suspend. But they know the damage it can do once they suspend, so they do so sparingly.
That was a VERY typical first grey trading day for a suspended pink. So what did people learn? Nothing. 65% pps drop. There are little to no new buyers. Nobody has been successful long on a suspended pink. You know that.
And I would bet we will continue to see a typical suspended pink trajectory...lowering volume day by day, week by week, pps following as a step function as volume decreases. There will be some wild swings, a few fat finger trades, some EOD last trade spikes and then at some point in weeks?, months? from now the first zero volume day. The chorus from the pumpers will be "nobody wants to sell!"...likely in the trips.
But you're right, I don't know for 100% certainty...just like I can't ever say for 100% certainty that the sun will come up tomorrow.
They did investigate first. SEC does not suspend until they investigate.
KMAG...the only thing missing is the tag line "XXXX has my trust because he has earned it".
But every other misleading, misinformed, "this is no big deal" line is being thrown out. They are celebrating the fact they got to pick up cheapies at 65% discount...LOL.
LLEG has been mentioned a few times early next week.
Come join the party.
Wow...Mr. Reid is either incompetent or intentionally misleading. No MM is going to sign off on a 211 for a suspended pink under SEC investigation. Has never happened. And he thinks that can happen in weeks??
So he is either naive...or he knows perfectly well it is nothing but wishful thinking.
The SEC is pretty well sensitized to people/groups with agenda. Especially bloggers. If I was a long I would hope that JR did not write that email.