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Sterling posted this yesterday and it got lost in the static. Silver lining.
SmallCapsMarket, here's the “beauty” about this deal...
The beauty about this deal is that the company used Preferred Shares and "NOT" Common Shares to execute the transaction to acquire Medical Greens ™. The Preferred Shares were used as a "Poison Pill" type of technique to establish control of the company without diluting the ”actual” value of the company.
If there were any intentions by SKTO to dump shares, then they would have not issued Preferred Shares; they would have issued Common Shares. They had to increase the Authorized Shares (AS) simply to show that such an amount of shares could be captured from the company's Treasury of Shares within their AS for ”just in case” reasoning of ever having to convert the Preferred Shares into 51% of the Outstanding Shares (OS). So yes, they had to raise the AS, but not for the reasons you are insinuating.
Now, when they actually show a capture of Revenues to have ”Net Income” within their financials, an Earnings Per Share (EPS) will then be derived by still using its "unchanged" OS of 362,050,303 shares instead of using a much higher number. This means still "no dilution" in SKTO value and no dilution to its OS of which again is the Key Fundamental Denominator for assessing "Fundamental Valuation" of a company and not its AS.
It's a little tricky for understanding right now, but this was the most awesome way of doing this to keep the company's value intact!
The deal says that the Preferred Shares are…
convertible at any time ”after one year” from the date of issue into 51 percent of the resulting common stock outstanding.
This means that the shares can only be issued into Common Shares after 1 year goes by after being first converted from Preferred Shares into Common Shares. They will be restricted for 1 year. Since the shares are still in Preferred Shares status, there is absolutely no concerns and confirms what I had mentioned above. You are interpreting such incorrectly.
Wow, thats a couple coins for sure. Thanks for the heads up. skto
Well said, an A/S increase of any kind no matter the reason or how small seem to make the rookie type investor recoil in fear... other investors, just take a smoke break from the static for a few days. Or join the flipper-mania between updates. Right on DMOST SKTO
Rainer got me twice in one year... how he is not in jail amazes me.
I know Kevin was a very busy man in Hollywood prior to his involvement with SKTO. When you look around the net, you can tell that this is his baby, he is a VERY big influential popular mover and shaker. For a man like this to give his undivided attention to a single project? It's just a no-brainer....something huge is in the works.
I just can't imagine the amount resources, business savvy and influence that have been used over the last month by Mr.Allyn and team on SKTO's rebirth. It's just amazing how much they have accomplished in such a very very short time,...I have NEVER seen such a feet before. These people are serious!! skto
Sure better than providing Obama Care for that kid answering my phones while shes texting and shopping on Ebay. skto
I have to go through/call Virtual Offices almost every single day. In fact the company I am with in Calif uses it. Can't understand why this is even an issue any more. This is my last post on V.O. .. it's just a non issue, only static... period Thanks BB Player
Wow, Does that mean when I go to a meeting at the Holiday inn, I should be suspicious of the company for not having a Don Trump boardroom ? skto
This stock has been tested by MM,s bloggers you name it time after time and never broke it's back.. rock solid support reaching far beyond message boards... The core people that bought this are holding on to it like their only child in a tornado . They know what they have. A the moment .. it is an MM tug toy and flipper chump change. Not for long.
Penny History will be made here, can't be stopped ..too much work has been done, and the other mmj stock holders are shaking in fear imo.
Analogy: Hendrick Motorsports???? Remember when Rick Hendrick was convinced 1997? People thought that was the end and he got TRASHED .. Well most of us know the story and the comeback. SKTO same thing... the past is the past. Companies sponsor Hendricks cars and could care less about ancient history The biggest dynasty in Nascar EVER. Good people get busted??? happens all the time.
Penny mentality, if they can't get instant gratification they immediately throw the baby out with the bath water. Not surprised at all. skto
That post made my day thanks ... skto
Something updated almost every day,,,, nice work !! skto
Yes, happens every time. Well put. SKTO
Smart traders held some cash for today, didn't drop much though. Still, flippers making a little coin... all good. skto
Thought it was supposed to hit the .02's???? Maybe with another stock.. Didn't happen and it's not going to. The core investors know what they have. skto
OK, so they got into an existing company with at least 2 years of filings hitting the books. What is the next step to move up? skto
1.5 just a number on a paper. Anyone scared of that hasn't been in pennies long at all. lol skto
I bought because of the overhaul, not what it did years ago, I could care less what happened 2011/12. lol love the distortion going on now. skto
Guess people think every contract was supposed to pay 100% up front 2 years ahead maybe??? skto
I'm not worried at all. I knew nothing has been going on the last 2 years and so did anyone else with half a brain... skto
2012 of course no revs. what were you expecting ? skto
Please clarify ... thanks ..skto
No prob,,, keep watching thanks. skto
Do tell????? please what happened??? skto
06:40 in California ....thats why skto
.054/.055 tight tight....skto
.05 printed already? 28000 shares at 9;07 skto
.0475/.054 looking good skto . Someone is lighting the fuse.
Thanks stockfinder2012 : Great post. SKTO Chairman Kevin Allyn is Fortune 100 material. To his posted CV on the Medical Greens website and at technorazzi.com add the executive position he holds at ultra-elite "The Firm, Inc."
http://www.thefirmincorp.com/index.php?option=com_content&view=article&id=108:kevin-allyn&catid=35:executive-team&Itemid=59
SKTO shareholders are very fortunate to have a man like Allyn and his esteemed group take over the SKTO shell. It presents a rare opportunity to put it mildly when a group with their qualities, experience, and business connections appear in pennystock land.
Yes, I believe we may see a Monster promotion using only SKTO talent and it's connections that will amaze penny traders. SKTO seems to be the only mmj stock not using pump sites... imo
oh, ok.... nice, thank you. Good luck Skto
"without some concrete" It's still wet. The overhaul is only a month old, yet they are moving at an outstanding pace. Give them a little time. skto
Is iequity a new company? tia skto
Sorry, I don't get your point skto