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Its a Pink Sheet because they are de-listed publicly traded company.
Advantages and Disadvantages of Delistings:
Companies may decide to deregister for a variety of reasons that can be either good or bad for shareholders. A few of the most common reasons include:
Capital Savings - The costs of being a publicly traded company are substantial and are occasionally difficult to justify with a low market capitalization, especially after Sarbanes Oxley laws called for increased disclosures. As a result, deregistering can save a company millions and reward shareholders with a higher net income and earnings per share (EPS).
Strategic Move - Shares of the company may be trading below intrinsic value, compelling the company to acquire its own shares as a strategic move. This typically results in shareholders being rewarded with substantial returns over the short term.
This is why they are a pink sheet. The are listed as current pink sheets because they do follow the rules.
The split is subject to Rule 10b-17 of the security exchange act.
What you just described is a violation of the following:
It shall constitute a "manipulative or deceptive device or contrivance" as used in Section 10(b) of the Act for any issuer of a class of securities publicly traded by the use of any means or instrumentality of interstate commerce or of the mails or of any facility of any national securities exchange to fail to give notice in accordance with paragraph (b) hereof of the following actions relating to such class of securities:
A dividend or other distribution in cash or in kind, except an ordinary interest payment on a debt security, but including a dividend or distribution of any security of the same or another issuer;
A stock split or reverse split; or
A rights or other subscription offering.
They would need to give notice in the following:
For a dividend or other distribution including a stock or reverse split or rights or other subscription offering:
In cash, the amount of cash to be paid or distributed per share, except if exact per share cash distributions cannot be given because of existing conversion rights which may be exercised during the notice period and which may affect the per share cash distribution, then a reasonable approximation of the per share distribution may be provided so long as the actual per share distribution is subsequently provided on the record date,
In the same security, the amount of the security outstanding immediately prior to and immediately following the dividend or distribution and the rate of the dividend or distribution,
In any other security of the same issuer, the amount to be paid or distributed and the rate of the dividend or distribution,
In any security of another issuer, the name of the issuer and title of that security, the amount to be paid or distributed, and the rate of the dividend or distribution and if that security is a right or a warrant, the subscription price,
In any other property (including securities not covered under paragraphs (b)(1)(v)(b) through (d) of this section) the identity of the property and its value and basis for assigning that value.
In lamens terms to dilute more than 700 million shares.
So what you just described would be highly illegal and subject to criminal charges. No firm would dilute more than this A/S without FINRA approval.
Look at the SOS of Nevada web site. The share increase was for a stock split not an amendment to the articles of incorporation. So no new shares are being issued. While companies what for finra approval for stock splits they cannot alter share structure until the split is approved or denied. Right now we have no information on said split so we know the A/S for valuation is still 700 million.
Their analysis is week on profitability. They are understating the gross margin ratio. They are using last quarters COGS number that is bloated by free sample expenses. They just launched their flagship product line last quarter.
Anyone else see that more Cenergy products will be available for sale in April? This this is definitely set for great gains.
BILL I KNOW YOU READ THIS BOARD! WHEN IS HYPER-INFUSION GOING TO BE AVAILABLE FOR PURCHASE! I HAZ GOTS TA KNOW!
I think the drop was due to the insider trading stuff.
They stated that there was a loss on the sale, but they need cash more than a building right now.
That's what she said?
Not until they are upgraded on the NASDAQ exchange. This could be some of frost friends getting in.
I agree that companies need to communicate via web 2.0 with their customers. But don't do official PR's with the intent of notifying and updating shareholders with Facebook. You have very limited exposure and it is not professional.
In general not a good idea to use Facebook for PR purposes.
If you do a PR without approval, then get denied, how do you think shareholders will react? I know finra has been taking longer to respond to request so far this year because of another company I am invested in.
Slander is not appreciated on this board. While I appreciate your passion and defense of the CEO's integrity rj is a productive member of this board. However some may disagree with him from time to time lets maintain respect for each others opinions.
Don't forget finra approval
This whole conversation just got better... Just sayin'
People trying to keep it low do you think? Or some penny flippers?
It is publicly available on the SOS webpage. So any trades today on a F/S are legal.
Why would FINRA not approve this? I am pretty sure it would be safe to make the Facebook post before the split.
Thank you bill. You have proven that you do care about shareholders and their interest. Now I should be able to afford that engagement ring no problem.
Chart is looking good all we need is a PR and we could see another run.
Cdel wants to keep this pps low.
Lamp is on my L2, but it is at .0001 on the bid and $5 on the ask.
Ah ok, the light came on now. Thanks for your patience!
OK so let me clarify what I am saying. Creative edge nutrition is the parent (successor) company who was formerly named laufer bridge. Then acquired scd and sdn (the predecessor company.)
Aren't laufer bridge and creative edge the same company just a different name?
I was saying the SDN and SCD were combined into one. There is definitely something missing or wrong with these financials. I am taking them to a CPA tomorrow to look over and see if they agree and such.
Also with operating loss I was referring to their loss before the big debt conversion.
Well actually we both are right. There are three entities that are involved,
"The consolidated financial statements include the accounts of Creative Edge Nutrition, Inc. and its wholly-owned subsidiaries acquired SCD Enterprises, LLC and Science Defined Nutrition. All significant inter-company accounts and transactions have been eliminated in consolidation."
So it is not 2.06 million in total revenue it is 774,644 (creative edge revenue) + 495,407 (SCD and SDN) so a total of 1.27 million.
Total loss from continuing ops = 534,487
If they get their gross profit up to annual report margins of 47% then we need to get to 2.4 million in revenue to be profitable assuming there is no big loss on debt conversions.
There are three companies that they are showing they acquired within the quarter and that is why they they have to break down the revenues into four separate entities within the period. You are forgetting SCi-fit (they put those revenues in the q-1 report it looks like) and Chesapeake Nutritional are also Predecessor companies involved. I think the third is also A-Z Nutrition. So when you add the revenues up together that is where you get the 2.06 million in revenues.
As of June 30th Laufer Bridge should have been moved into the Successor entity. But again these are un-audited financial statements so there could be errors.
Ok thanks, I had not considered samples. Also I know that Mr. California got his hands on some samples and he is trying them out. Also there was a decrease of 30k in inventory so I think that they are at least shipping some out and they must still be producing goods. At least we know that they are indeed moving product.
Also as stated in my previous post, if they get back to their operating margins of last year they only need to get to 2.8 million in revenue to be cash flow positive. I see some good trends in this company, not bad like TAKI did.
He obviously does not know how to read financial statements. He thinks the company only earned $774,644. That is only for the parent company he did not add in any of the revenue generated by the companies acquired. In reality they earned, 2.06 million in revenue. (also keep in mind the big orders for Cenergy have not been recorded. They will be in q2 because they were recorded in January.)
I don't know why their COGS is so high but if they get back to their old margins in their annual report they will only need to get to 2.8 million in revenue to be cash flow positive. Do you know how their COGS could be so high? I can't think of anything.
I assume you are referring to the 57 million shares issued in the quarter?
As of December 31st they had 673,586,780 shares outstanding. So far the A/S is still 700,000,000. With the new financing contracts I feel comfortable that they will not continue to dilute much more. I will be watching the Nevada Secretary to see if there is any additional increase. I am very excited to see the q2 revenue increase. Also it looks like there was 2.6 million in revenue?
Is anyone seeing anything of major concern?
Yeah they are!
I got my order filled at .006 today. I am dancing in seat durning class right now :))))!!!!
It will be interesting on the financials. Either the orders will be filed in revenue or unearned revenue. That will definitely put us in the red or black when it comes to profit.
I am going to be hitting it on Tuesday! Next week should be fun!
I just sent their transfer agent a request for information on all of these form t trades and also for current insider positions. Hopefully they will shed light on these recent events.
Can anyone get updated information on insider sales? There has been no change on their authorized shares so I am curious as to what is going on with all of these form t's.
I want this to continue for at least two more days so I can load up some more!
Is the market open tomorrow and Monday?