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Taking that thought further if someone had two accounts they could log into both accounts and dump an AON trade below the bid, and then buy an AON trade beneath the bid, if one's intent was to buy lots of shares at a lower price. If one were then to create multiple large buy orders beneath the bid some traders might be willing to take a small haircut and dump into a rapidly collapsing bid.
There would no logical reason for a note converter to jump over large higher bids, just to lose more of their dilution shares at a lower price. A noteholder would simply sell all of the way down, not use strategy to get less money.
Preferred shares might represent potential dilution, in much the same way that an LOI represents a potential deal. Unless specific terms are met it may never come to fruition. Converted shares however are current dilution. If this wasn't the case then I could claim that since most of the shares diluted this year came from Klug's preferred shares the OS hadn't actually grown because those shares were already outstanding. If I said such a thing I would have been trying to deceive my listeners. Which is why I am focused on actual numbers, not worse case scenarios.
What will you talk about once the dilution stops? From what I see it's winding down, and will probably be completely over very soon, if it isn't already. Fortunately the 10K is coming very soon. Also Redhawk will file a motion to end the escrow agreement and get back 247 million shares. What will you say if a month from now the OS is actually much smaller than it is now?
Yeah, that would make a whole lot more sense and money. Who would have a team of investment researchers focused on one stock, that they believe will not be profitable, when there are thousands of stocks that are going to be solid value investments or swing trades, to be found?
Yep, record revenues, shrinking debts, 50% less dilution during the last two weeks as compared to the previous two weeks, company working with the courts to get back 247 million shares. and the 10K coming soon. More traders everyday are understanding what's really going on here.
All jokes aside, as soon as the the Feds and their cronys, take their profits from this huge bubble they created during what is a actually a global recession. They will be investigating every other crook out there, to distract us from seeing how they used QE to turn the global economy into the biggest pump and dump scam of all times.
I think that the only reason that we came down to .004 was manipulation. Whoever was hitting the ask premarket today, and postmarket the past few days wants to load millions.004s, and has enough money to get MMs to do their bidding.
There's also a few longs buying millions of .004s as well, because we saw through the ongoing endless negative attacks while loading charade. We all know that historically in the OTC especially, it's often the loudest negative voices, that are buying the very fear they are busy sowing. I don't sow any fear, but I'll definitely buy it, especially at these artificial lows.
Dilution maybe over, but revenues are going up,all of the time. 10 k in a few weeks as for me I'm buying.
I think people are more and more going to see through this "we are going to the trips" story soon enough. The future here is all about growing revenues, and profits.
That's what it's all about. The same people who refuse to buy low, will eagerly buy at a much higher price.
The company's updated share structure has been released, and as I expected there was a small amount of dilution. This is the current share structure:
And just for a reminder this was the share structure at the end of last month:
As we can see there was a 12,649,275 increase in the number of shares held at DTC. And similar increases to the OS and unrestricted share counts. This shows us that the rate of dilution is actually much lower this month than it was last month, which is more consistent with dilution winding down and coming to an end, than it is to an ever increasing amount of dilution as some have speculated.
'Dilution is not coming hard or fast, it may not be coming at all. I'll trust my research abilities over unfounded speculation.
This post is nonsense why would I know why the company hasn't put them out? I am not an insider, I'm not working for either the company or Schreiber in any capacity. Can you say the same? I'm sure that it will be out soon enough. I don't have much riding on this update, although I would sort of like it to show no dilution just to debunk all of the speculation.
I am not Uber. I think you should call the company with your concerns.
I for one am looking forward to the share update, if there has been a little dilution and traders bail, I guess I'll be buying a lot more shares. If there's no dilution and traders start buying then I guess the value of what I have already bought will be going up. So there is no down side for me.
What a strange way to dilute a stock. Selling at 10% higher than the market close, 690,000 shares. And look there is a 10,000 share buy at the bid one minute before the close. I can imagine other causes for that T Trade other than dilution, but we really won't know anything for certain until we get the updated share structure.
Exactly, if you hit the ask in the last few minutes of the day with a huge buy, such as the entire ask, while the MM on the ask is short, it will sell you some of your shares at the bid to protect its short. The MMs algorithm can't let your whole buy go through at the ask, so they will give you part of your buy at the bid keeping the price low so they can sell their short shares and cover at a lower price. After the bell it will then sell you the rest of your buy at the ask in a T trade. I know this for a fact, the evidence is below:
The way some traders are talking, looks like too many people are taking this 2 billion share AS nonsense as a real possibility. I am just going to keep buying the fear every few days. Because I know the difference between nonsense and research/ dd.
My favorite part of that motion was this:
So the court took away from the Schreiber the right to dilute Redhawk's shares, last week.
So not a single one of the 247 million shares held in escrow, can be diluted as it stands today. Just another reason not to believe that any huge wave of dilution is coming.
I think that Schreiber must be drinking hard liquor if he thanks the court is going to let him retain control of the 247 million escrow shares. After all the escrow agreement which he signed clearly states:
Does he somehow imagine that the court will change the terms of the original escrow agreement, and allow him to retain control of 247 million shares of Redhawk's common stock that he previously agreed not to hold onto once the two notes were paid? I can't imagine any reason for him to believe that while sober.
1.Copy 2. Paste 3. Go back to 1 and repeat. The least you could do is personalize who the post is addressed to. Why not call Klug, he would love to talk to you.
I do have a question for you: Will Schreiber oppose the motion to end the escrow agreement? I really would like to hear what your "boys and girls" think about him trying to keep 247 million shares in escrow to guarantee payments that he has already received, will be paid when payment has already happened? I could wait for the court filings but I think the "we" team has really reliable insights into all things Schreiber.
Well investors here don't have anything against the company's attorneys. We are just hoping the Judge forces Schreiber to dissolve the escrow agreement, as it has outlived its usefulness and it's not like Schreiber has any right to dilute the 247 million shares in escrow anyway. Schreiber has has got to be laughing at all the naive traders who blame Klug for the problems he caused. In his court documents he complains about how many shares the company has diluted, and yet he hasn't released the 247 million shares held in escrow to guarantee monies already paid by the company. That's not escrow works...
Fortunately, Schreiber's fortunes can only go down from here. Best case scenario for him is that he gets keep most the bond money already set aside for him, in the event appeal doesn't succeed. Of course Redhawk could always win in which case he wasted a huge amount of time, energy and money fighting for the exact same amount of cash he was going to get anyway. There also aren't enough investors out there foolish enough to sell the stock they own in a growing company, because some crook who has spent years projecting his own criminally oriented thinking on other, more capable business people wants them to.
I have no idea what happened, I checked in this morning and saw Uber's message that I might have blocked my own messages. So I checked my profile and there was an option to follow myself so I tried to follow myself a few times, and after a few 504 messages it let me follow myself. Then I checked for my messages and saw them all and assumed that Uber had guessed it right that I had blocked myself somehow. But since you also couldn't see my messages either I don't know what to think. It would be great if you took a screenshot like I did, but it's working now.
During the night they all disappeared but they are all there now, so it must have been some sort of glitch.
Thanks for the practical help, my apologies. No I only have 1 alias, and there's a huge difference between a 500% or fivefold increase of $148k which would be about $740k in revenue and a 500 times increase which would be $74,000,000 in revenue.
Redhawk revenue increased by 500%, last quarter.
I can't see the post that you are replying to. You know the one that shows Schreiber trying to hold onto 247 million shares of Redhawk that he's not entitled to. Why is it hidden?
There's no time like the present to ask what Redhawk' management has been doing lately? Rather than tell what I think or feel, I am just going to let the facts speak for itself.
First of all we know from court records that 247 million shares were added to the OS, as part of an escrow agreement, designed to guarantee that Schreiber would receive the money from the settlement agreement no matter what:
Schreiber's attorneys however rejected the the use of those shares as sufficient collateral to pay him, and demanded a cash bail be paid to court, as we see below:
While all this was ongoing Redhawk prepaid Schreiber all of the money owed under the original settlement agreement.
The court agreed with Schreiber that a cash bond should be paid within two weeks, and when Redhawk agreed to pay it the court stayed an earlier order, that would have gave Schreiber the right to seize Redhawk's shares and sell them on the open market, so long as Redhawk paid the bond by September 11, 2020.
So Redhawk paid the cash bond on Thursday:
The company then requested that Schreiber agree to dissolve the escrow agreement. Their reasoning being that since all of the money that the lower court had demanded of them has been paid, there's no reason to hijack the company's share structure with 247 million shares to guarantee payments that have already been received. Schreiber now has no legal right to dilute. When Schreiber ignored their request the company asked the court to force him to release him from the now gratuitous escrow agreement on Friday:
So this is what the company is doing currently, the company not only increasing revenues by 500%, but it also prevented 2/3 of the shares added to the OS this year of 2020 from ever being sold into the open market. What is more it is now fighting to get those shares back. None of the above is someone's opinion, or speculation. It's a list of recent demonstrable facts.
There has been a concerted effort to paint a negative picture of the current management of Redhawk. So there's no time like the present to ask what have they been doing lately? Rather than tell what I think or feel, I am just going to let the facts speak for itself.
First of all we know from court records that 247 million shares were added to the OS, as part of an escrow agreement, designed to guarantee that Schreiber would receive the money from the settlement agreement no matter what:
Schreiber's attorneys however rejected the the use of those shares as sufficient collateral to pay him, and demanded a cash bail be paid to court, as we see below:
While all this was ongoing Redhawk prepaid Schreiber all of the money owed under the original settlement agreement.
The court agreed with Schreiber that a cash bond should be paid within two weeks, and when Redhawk agreed to pay it the court stayed an earlier order, that would have gave Schreiber the right to seize Redhawk's shares and sell them on the open market, so long as Redhawk paid the bond by September 11, 2020.
So Redhawk paid the cash bond on Thursday:
The company then requested that Schreiber agree to dissolve the escrow agreement. Their reasoning being that since all of the money that the lower court had demanded of them has been paid, there's no reason to hijack the company's share structure with 247 million shares to guarantee payments that have already been received. Schreiber now has no legal right to dilute. When Schreiber ignored their request the company asked the court to force him to release him from the now gratuitous escrow agreement on Friday:
So while so many posts endlessly recycle old news, or worse misrepresent what the company is doing today, the company not only increasing revenues by 500%, but it also prevented 2/3 of the shares added to the OS this year of 2020 from ever being sold into the open market. What is more it is now fighting to get those shares back. None of the above is someone's opinion, or speculation. It's a list of recent demonstrable facts.
I have no way to actually know, but my guess would be someone who is upset that traders keep buying their shares. A better question is why would anyone expect the share price to implode due to the less than $15,000 worth of shares that has changed hands here today?
Traders aren't in control of dilution, and it's not up to longs to stop dilution. Here's how companies stop dilution. They first have to increase their revenues, you know like Redhawk has with 500% revenue growth in the last quarter. Then they work to pay off debts in advance of their due date, again like Redhawk is doing. Finally if necessary they go to court and do what has to done to prevent people like Schreiber from crushing the company's share structure, sort of like just happened on Tuesday.
As we can all see below:
Yeah obviously the SEC, wasn't telling investors to avoid all medical equipment supply companies like the plaque. Redhawk Medical Products LLC was in the medical equipment business long before COVID-19, and it would have been irresponsible for them not to make their product line responsive to their customers needs when the pandemic, began.
It's funny how the perspective of so many traders is reactive instead of proactive. We are sitting as the lowest price level since September of last year, and instead of buying peeps are laser focused on speculative future dilution, that if they would actually read the court filings they would know isn't coming. I figure I should share why I bought 500,000 more shares yesterday:
Now as some have posted day and night for some weeks There was some dilution in the past 2 months, but the price didn't collapse until the Writ of Execution, authorizing Schreiber to seize and dilute however many common shares of Redhawk he needed to pay him $519K. This can be demonstrated by simply using any chart:
Now the reason we down so much is simple, the more shares that are bought or sold the more money MMs make. The last 10 trading as of this morning is only 4 million shares a day, hardly enough to obliterate the AS, or cause a r/s or any of the other things some have claimed it would during the past few weeks.
So with dilution if a company does not release a lot of PRs,there would be very little incentive for traders to buy. However if MMs simply short prices down to the lowest bid. It would require that the converts sell more stocks due to the lower pps.
So in anticipation of $519k of dilution the MMs shorted the price down almost to current levels. This started happening shortly after the court ruled on Augst 28th that it would not stay the Writ of execution. Now would be a good time to look at a chart of the last month more closely to see what happened after the 28th:
The only problem for the MMs and others expecting dilution is the company decided to pay a cash bond. Now that the order allowing Schreiber to dilute is stayed, the big unending dilution many are talking about is just not going to happen. Everyone will figure out very soon that the big dilution has already come and gone, and no second wave of dilution is coming. Instead tons of news related to th 10 K, huge revenue increases etc. is what is actually coming.
It's about time that someone talked about what is really happening here. As opposed to the repeated chirping about dilution.
There's no reason to believe that the company is in the process of maxing out its AS. I've already debunked the rationale behind those claims here: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=158092194
That's why I was buying again today...
Good for you, I don't want to tell people what to do with their money, as for me I was buying last week. My guess would a combination of revenues and dilution. Obviously there has been some dilution, since I just follow the DD where ever it leads, I 've wrote about that as well. As everyone can see here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=157893827
But since I want to make my investment decision based on the best information, I look deeper I know this was a troubled company in the past, but all good investors are interested what the future prospects of a company are, not just it's past struggles.
So I pay attention to fact that their revenues which were $146K in the third quarter quintupled last quarter:
It is fair question to ask why the OS increased so much last month. As longs here are well aware of that same non productive former CEO Schreiber sued the company, last fall to accelerate $400K that the company agreed to give him over two years to be due immediately. In February the accepted his arguments and awarded him both the $400K originally owed over the next two years immediately, plus an additional $100K+ in attorney's fees and punitive interest. So the company appealed to a higher court.
On July 16th that same lower court entered a cash judgement allowing Schreiber to enforce the previously approved settlement agreement for $519k. This ruling would have allowed Schreiber to seize Klugs preferred shares, convert them into commons, and dump them on the open market.
Klug was not about to let Schreiber do that, so he used the automatic waiting period in which no enforcement action is allowed, to convert his preferred shares into commons and then placed 247 million common shares into the settlement escrow. Since the value of the common shares was greater than all of the money owed to Schreiber the company's argued that no cash bond was required as you can see below:
Schreiber next asked for and was granted a court order known as a "Writ of execution" which gave him the right to seize the company's shares and dilute, but Redhawk's attorneys convinced the court to postpone the enforcement of its own order until a hearing held Friday before last, to determine if the common shares in escrow, were an acceptable guarantee that the company could pay Schreiber the remaining $143K of the lower courts judgement, or if the court would demand that amount in cash in order to prevent Schreiber from diluting. The reason it was only $143K was because the company had issued two checks prepaying the $400K originally agreed upon under the settlement agreement, while still affirming that the acceleration of the agreement was not justified.
Well Friday before last the lower court decided that a cash bond would be required within 14 days, or Schreiber would be allowed to dilute. And this past Friday the company payed a cash bond to the court to prevent Schreiber from diluting, as you can see below:
So here are the main points:
1. Most of the shares added to the OS in the last month, were not dumped into the market, but were used as by the company as a an escrow in lieu of bond deposit. Which the court rejected demanding cash instead, which company has since paid.
2. At each stage of this situation the company fought vigorously to prevent Schreiber from being free, to dilute the company's shares.
3. These efforts to ward off dilution are in no way limited to Schreiber's lawsuit. as I have explained in earlier posts.
There's a tons of real DD out there if posters want to know what really is going on here.
But since you want to go there 1 month ago the OS was a little over 976 million shares with a pps of around $0.006 but by the 18th of August the OS had risen to 1.256 billion and yet the pps had risen to $0.0083 so there's much more to the story than what you are suggesting.
Whatever you think about Klug the company produced 500% more revenue in the last 10Q than it did the entire year plus that Schreiber was CEO. There have been at least 2 PRs that mentioned that 4th quarter revenues were 5 times greater than 3rd quarter revenues. That means that current managment produced 25 times the amount of revenue in the last quarter than Schreiber was able to produce in 5 quarter's as CEO.
The 10K should tell a very different story than what is being, endlessly repeated on this board. Don't take my word for it, do your own DD, and definitely don't take the words of any other posters here as well. There are 10,000 companies in the OTC, so why are so many posters working so hard to prevent new investors from looking here? 10K coming in a few weeks.