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You should never accuse others of lying while actively makes multiple false statements. First in spite of Redhawk not missing any payment Schieber found a technicality to cause their payments to be accelerated then sued and secured the acceleration of the payments plus over $100K in interests and legal costs. Coming to this year he petitioned the court for a Writ of execution giving him the right to seize and sell Redhawk's property, yes including its shares. Just to refresh your obviously faulty memory you might want to read what Schreiber asked the court to do below:
Once that request was granted Schreiber only didn't dilute because the court stayed it's own order. Nevertheless Schreiber ignored Redhawk's repeated requests to end the escrow agreement after all of the payments it had guaranteed were paid, until yesterday. So get your facts and don't falsely describe facts as lies.
See now to me that is trying way to hard, I would never claim that anyone's worst nightmare is about to happen, speak of anything being jammed down anyone's throat or spout similar over the top propaganda.
I honestly don't know, my thinking is that the company needs to have control of what it's share structure is. Up until yesterday Daniel Schieber had control of a what the company did with a quarter of a billion shares. Most of the court proceedings during the past year has been about Schreiber trying to seize and dilute Redhawk Stock be it preferred or common stock. So him not having any control at all over the share structure is a good first step. Anything beyond that is up to the company.
Those are my thoughts exactly!
Careful fact based due diligence remains the best way to make sound investment decisions, and anticipate what will happen to your investments in the future. For example for the last week and a half I have repeatedly stated that there was no legal defense for Schreiber to hold onto Redhawk's property including the 247 million shares held in escrow. Based on that understanding of the relevant laws I predicted that Schreiber would have to terminate the escrow agreement. It appears after carefully looking for some sort of legal loophole, Schreiber's attorneys have found none and have decided not to wait for the court to force them to end the escrow agreement. Redhawk will regain its 247 million shares in a matter of days. The court document verifying what is stated above is posted below.
Now based on my due diligence I will await other pending material events that will falsify "the Redhawk is a scam" narrative currently be used to scare away investors.
Thanks for your concern but I will keep trusting my DD.
It's all an attempt to create panic and load shares at lower and lower pps. Think about about this, the goal of a short and distort campaign is to accumulate shares. So the big payoff for them is to get longs to sell at a lost, either out of frustration or to attempt to buy lower. When a long capitulates and sells their shares, they simply buy longs shares and place them on the ask. Until their "the sky is falling",narrative gets falsified, by company filings the games will continue.
I have looked very carefully for signs of legitimate dilution today, but I mostly see wash trades. Yesterday's profit taking in the high. 003s offset today's losses when a little over 3 million shares traded above Friday's closing price. Today 3.2 million shares were sold in the low thirties to get us to the .002s then 3.5 million shares were sold into the .002s, and 3.5 million shares were bought in the .002s. This means that the wash traders now have more shares than they did yesterday. So the short and distort campaign is now in the accumulation phase, it has been since that 22 million shares traded day last week. I don't have a good count of how much dilution has occurred, but the huge volume of wash trades leads me to believe that there is far less dilution than there appears to be during the past few days.
I agree, I'm also pretty sure those shares sold into the bid at .0026 thru .0029 are now on the ask at .0032.
10K coming soon, then this game will end. Also on the 30th the company will submit its motion to get the 247 million shares Schreiber is holding hostage back. So time left to run a short and distort campaign is limited.
It is a whole lot easier to get cheap shares now than it will be after the 10K. That's why I have been buying. 10K coming soon...
Data without context is just noise, which is why I spend so much time looking into the why, because knowing why things happen is much more useful than simply knowing what happened. We don't need endless reminders of past 10Qs to understand what is happening right now. The soon to be released 10K is much more important to current investors than past share counts.
Well said, this is obviously true.
Avg or average only suggests that multiple transactions occurred at different prices. Some people believe that only convertible note holders or institutional buyers trigger average prices to five decimals, but that's just another myth. Here's a recent example:
Notice that even this relatively small transaction is made up of many smaller buys at different prices. The average price of the above transaction was .00339, and it was retail, I bought it. Average buys or sales happen frequently when the MMs are manipulating the price lower toward large hidden bids. Again your model is demonstrably flawed and it should become apparent even to you if you compare your estimated dilution to the actual amount of dilution in the next share structure update.
Dude noone is going to come crying to you. Especially not any of us who have been loading these near 52 week lows. Claiming that every T Trade no matter how small marked as a sell is dilution, is sort of like claiming that every T Trade buy is an institutional buyer, it's simply not true. I have personally been part of too many T Trades to believe that, I even took a picture of one to prove it.
See this is what an after hours trade in the OTC usually is, especially small ones. Large 10 million shares T Trades on 5 million shares of market hour volume, are another matter, but that's not what we are talking about here. You probably should actually have evidence your T Trade model works, before you claim it proves anything at all.
In HIS OWN WORDSTaken directly from their August press release.
If you don't know the reasons for dilution, then you have no context to draw conclusions or make sound investment decisions. Will dilution continue or will it end that's what investors and traders really want to know? You state that it will continue, however based on my understanding of what caused it in the first place I think it will shortly come to an end. Time will show which one of us is correct. In the meantime revenues for the past quarter are at least $750 K, profits are 50%, and the 10K will be out very soon.
Not too long ago I took a deep dive into the "logic", that underlies the argument that the OS is going to 2 billion, (at that time the claim was 1.5 billion) and and found that argument to be completely misleading. I don't believe in copying and pasting the same post repeatedly, so I left a link below to my previous response to the same baseless speculation:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=158092194
The OS increased by 331 million shares between June and now, 247 million of those shares, or 74% of the OS increase, were due to for an escrow agreement that existed to guarantee that Schreiber was paid in full, which at this point in time has already occurred (without the escrow agreement the OS grew by 8.6%). Under that escrow agreement not a single one of those shares can be diluted without a court order. This isn't some insider's secret, it's publicly available information, that I obtained by reading court filings. Anyone can read those same filings by going to this website below:
https://www.pacermonitor.com/case/20476448/RedHawk_Holdings_Corp,_et_al_v_Schreiber,_et_al
I've presented some of what I see as the most important facts in the post linked below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=158258304
So let's be real, the dilution as represented by the unrestricted share count grew from 712 million shares in mid June, to 828 million shares in mid September, a 16.5 % increase that eliminated the single biggest financial problem the company faced, the debt owed to Daniel Schreiber due to the settlement agreement, as well as other pressing financial obligations. This happened during a period of rapid revenue growth something that will be apparent to everyone once the the 10K is filed.
When I do due diligence I never seek to be an apologist for, or a prosecutor of a given company's performance. So if I see that the OS shares increased by 33%, in two month's but I ignore the fact that the escrow agreement shares literally accounts for 74% of new shares in the OS, but none of the shares trading on the open market then I'm not really getting an accurate picture of what is happening with the OS.
It also doesn't benefit anyone to ignore that the company made over $750,000 in revenue during the quarter that ended on June 30th. Accurate DD, carefully done without any agenda is the only way traders and investors can make good decisions.
You speak about this exchange agreement as if it was a bad thing that hurts shareholders. Let's simplify what is saying so that we all understand what happened.
1. How many shares did Klug remove from the OS by converting his common shares into preferred shares? From the 2019 10K:
Well he's not a professional conman like Schreiber, who has a very good history of getting off on technicalities, you know except for that SEC litigation. We all know that Schreiber only won his case in the first place because Klug didn't sue him fast enough. In any event, Klug settled in good faith and has paid off the original settlement agreed upon in full. He also paid the $143K bond to the lower court, so there's very little Schreiber can legally do to harm this company at this point. Of course that is why he is illegally holding onto the 247 million escrow shares which accounts for most of the dilution of the OS that has happened recently, but that will end shortly, one's desire to hurt a company's financial interest is not a legitimate defense for what he is doing.
There is also an appeal in the works. We have to wait and see if the way the previous judge interpreted the agreement to allow Schreiber to accelerate the loan can actually withstand review or not. If it does, nothing changes for investors except Schreiber wanders off to defraud other unsuspecting investors elsewhere. If the appeal is successful however the $143,000 bond will be returned by the lower court and Schreiber will have to pay the company's attorney fees.
The real mic drop will come when the 10K is out, when Schreiber gives back the 247 million shares, which is going to happen, and everyone can clearly see what's what.
(Start video at 44:14)
So who was the CEO in 2015? I'm pretty sure it was Schreiber.
So based on your new numbers Schreiber is responsible for 47.4% of the dilution this company has experienced in the last 23.5 months. Although, it didn't happen evenly every month, most of it happened in the last couple months, which is the main reason the OS has risen lately. Imagine how much more the company could have accomplished it weren't for that small minded, deceitful, fraud. I glad that he's gone, and hopefully he loses his appeal, so it can be his turn to pay Redhawk's legal fees and the company will get back the $143K it paid for bond to the lower court.
Okay so I gave you time to expound upon your point that the only way for the common shares owned by Beechwood to be converted back into preferred would be for Klug to simply break the law, now I'm going to explain why that is not true using a purely hypothetical scenario.
Klug could decide that the OS is too high, and as the largest shareholder he is in the best position to do something about it. So he could create a new LLC that is owned by the company, with himself as the administrator but not the owner. The new LLC would hold zero dividend preferred shares, that were only convertible into common shares if they were used for an acquisition, in the event of a buyout, or to prevent a hostile takeover.
The LLC administrator would be given the right to buy the LLC and its preferred shares for some low preset price, in any of the three circumstances in which the LLC's shares were convertible except an acquisition. Then Klug could take most of the Beechwood shares, let's say 178 million of them, give them to the new LLC, and then as the administrator of the LLC convert them into the zero dividend preferred shares. Just one way to convert them back into preferred that is legal and protects Klug's interests, while reducing the OS.
You could always keep your running model to yourself until the day before the share structure update is due, then release it so we see how good your T trade counting dilution model really is. The true test of any model is how predictive it is. If your T trade count is actually able to predict the amount of dilution, then comparing your own count to the official account would demonstrate that. If it did you would look brilliant, if it didn't no one could accuse you of making up dilution to hurt investors and get cheap shares. It's just an untested model treat as one not an established fact.
So it's illegal to covert common stock into prefered? You need to cite what law prohibits it, because we both know it is not illegal. Unethical again you need to elaborate how. How does it actually hurt shareholders, no vague claims be specific? I'm certain that spreading negative false rumors about a company is both illegal and unethical
Let's take your numbers, and for whatever reason start counting from 23.5 months ago and multiply those 23.5 months by 37.7 million, what you are saying is that 885,950,000 shares were added to the OS since October of 2018.
Now to determine how much dilution we can attribute to Schreiber, we will first look at court filings. The escrow agreement with Schreiber is responsible for 247 million of those shares. We also realize that the company paid Schreiber $400k last month, but also $250K back in March of 2019 as part of the settlement agreement. There's also the $143K in bond the company had to pay for a total of $793k.
Let's accept your argument that the company paid for all of that debt by dilution. And looking at the charts a average pps of .006 seems reasonable. So if we divide $793K by $.006 pps we get 132 million more shares. If we add the 247 million escrow shares to the 132 million settlement/ cash bond payoff shares. We get a total of 379 million shares of dilution directly caused by Schreiber in the last 23.5 months alone. Said another way 42.8% of all shares that have been diluted has been due to Schreiber.
The fact that he is now fully paid suggests that the company will not need to dilute nearly as much in the future as it has in the past. The fact that revenues are up 500 percent in the last quarter, and headed toward record growth this quarter strongly suggests that dilution may end soon altogether. So to state that Schreiber did not dilute 37.7 million shares per month is correct, the numbers show that we can only attribute 16,127,600 share per month on average that Schreiber has cost investors in the last 23.5 months.
It means that Redhawk is a real company, with real revenue, helping real customers. Not like the fradulent and deceitful scammers like Schreiber and his team of boys and girls, who the SEC warned us about both in general:
Watch the video clip of Dr. Drew using Redhawk UV sanitizing lights by clicking the link below:
https://www.bitchute.com/video/Q6KjeU6MujtP/
Real company, real people,real products.
He converted them into commons to protect them from Schreiber's attempt to take preferred shares. Now Schreiber can't get them so it will either end up as preferred, used in an acquisition or both. Which would all be good for shareholders. Schreiber being allowed to take Klug's preferred shares convert them into commons and dump them all into the bid, which will never happen would have been very bad for investors.
If someone were to try to manipulate the stock lower in the manner that I have described, and other stockholders do not panic and sell. Then the net result of their manipulation will be that they have less shares.
Plus who knows I'm in another stock where people were manipulating the price and claiming dilution, and management just randomly updated their share structure on OTC markets early, exposing the dilution narrative and dumping as stock manipulation. One never knows how management gets these ideas...