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Whiplash, there is a major flaw in your logic. While you are correct that the shareholders get a bigger piece, the increase in the size of the pie outgrew the amount that the shareholders are getting. On a fully diluted basis the share price to shareholders actually drops. Furthermore, there is no longer an impediment to the new shareholder from converting. As you recall Brian blocked Cathy from exercising her shares because he held just a small amount those shares. The shares required 100% unanimous votes to be exercised. Now this new individual can exercise at free will. Further complicating the matter is that he also is the noteholder of the $11.1 million in short term notes. So he basically bought 1/2 the company which had a market cap over $200 million for $13MM. Do the math to find out how much that is valuing the company. There is a strong incentive for this person to short the stock and when the notes come due, force the company to pay them. If they can't, then he can force the company into bankruptcy and literally close shop. All the shares he shorted would never have to be declared as income and he can take the loss on the loan against his taxes. Its a win win transaction. Its pure speculation on what the investor might do, but your implied value has dropped.
I thought the same thing, but if you subscribe to Morningstar they show that Amundi owns 345,000,000 shares as of 2/28 reporting. The fund that owns them is a European Equity fund and it doesn't fit their investment parameters. They should have filed a 13-f and they were also a 10% holder and a more than 5% owner. So the only thing I can think of is that Amund sold the position and that is why they didn't file.
Correct. They already awarded the contract to another company. If you read the site PR, it says to be contracted. Which means there is no contract for this and they are doing this on a wing and prayer. Also, if you read the contract between ConEd and the company that is supplying the backup systems to them. The contracted company is paying a lease fee for the property, has to get all the permitting and environmental work done. This is process especially in NY. The CEO is engaging in a bit of verbal sleight of hand. However on Discord he implied he had an agreement with ConEd. "If only I could show you the paperwork" is what he said. His excuse was it has the site address and he doesn't want people to go to the site
Josh,
Con Ed is definitely doing something with Battery storage, just not with OZOP. Here is a link to what they are doing https://www.coned.com/en/about-us/media-center/news/20201216/con-edison-174-power-global-battery-project-queens
It's with a company that went through an RFP process. If you look at 174 Power Global's press release you will see very similar wording to the OZOP release.
Always blaming the MMs. They don't play games they work off of order flow. None of these guys trade for their own accounts anymore because there is no money in it. This is because the CEO just gave himself 4 million bucks and delivered nothing. Added some new debt that will again crush people to buy on the hype of Discord or some BS tweet that has nothing to do with them.
Uber, if you are calling or emailing the PR firm, you aren't going to get those answers. That's the question for the IR firm Waypoint. Highly doubt they can answer those questions as well. The PR firm money is being wasted, it will not help the company and it could be better spent elsewhere.
Gold hits US$2,060. Will we see $2,100 soon. NQ in perfect position to capitalize on this rise in both gold and silver. Check out their website. Subscribe. This is a real mining company with top flight management.
Carpe DM, Inc. and youtu.be/utjhDIMBDN8
@CarpeDMinc
With #gold continuing to skyrocket I'm surprised that more people haven't jumped onto the $NQMLF train. They are currently producing Lead, Zinc, Gold and Silver. Just added major gold mine and will begin refurbishment soon. $AUY $ITOX $RGLD $OZSC $MEDH $FRX $AUM $KG $NE $ALYI
Gold hits US$1,939 in AM trading. Will it hit $2,000/oz. News keeps getting better for NQ Minerals.
Gold hits US$1,900. Good news for NQ and its potential at Beaconsfield.
Will gold go over US$1,900 per oz by Monday? All good news for NQ.
NQ continues to put out very encouraging news. Waiting for US investors to discover this company and its potential.
Exactly right. Not only that, but why is the OZSC paying her 400K to merge with them. Usually its the existing company paying the shell that money. All these folks who hold convertibles are laughing their proverbial asses off at the penny players here. I wonder how many are getting sucked into this. Those 300 million new shares equal about 50,000 worth of debt. They are making about a 400% return on their investment and it never gets any lower because the interest rate is high and continues to compound.
The only people making that money are the noteholders. Just another penny pipe dreamer trading fractions of penny. Meanwhile the stock continues downward.
I don't recommend buying this stock until the merger is actually completed and you can see what this company (PCTI) is actually doing revenue wise and profit wise. All you are doing is buying the sizzle. This could be wagyu beef or it could be the horse that came in last in the glue factory stakes. If you're hoping for some miraculous run, they had that when the stock first reverse split. I don't see that happening again, unless the noteholders are completely gone.
Nobody actually believes you've bought anything. Each time you've posted you've managed to buy at that point in time's low. You're not getting it at that price, certainly not every time. But keep buying because the noteholders will keep selling. They are making bank on your back.
Renae, that buyout idea is an absolute pipedream. First, understand even when those shares are issued to Ms. Chris, the price of the stock goes unaffected unless there are enough astute investors who feel like shorting a penny stock. Not likely. Most people won't notice until much later because the company will bury this in a filing and it won't show up until they file their quarterlies. Are you going to care is the question? Now with respect to a buyout, this company has been in business for 2 years. Assuming that current management owns 100 percent of PCTI and you thought you were going to be bought out in 2 years, there is no way you'd jump into a shell that had $1.5MM in convertible debt. That debt is convertible at 58% discount to the lowest bid price of the look back period. So you are basically discounting the value of your business by a significant amount. Even if the company were to get a buy out of offer of say 4x sales or $56 million, her take home from that would be reduced by the conversion of all the debt. So if she owns 900 million shares, there are currently say 300 million (for the sake of round numbers) and 1.5 million in convertible debt. If the stock is trading for a 1c at the time of the offer, the conversion price on the 1.5 million is .0058c so that would add another 258 million shares. So the buyout she ends up with with 34.8M of the 56MM buyout. Basically giving away 22 million for the privilege of being public. I ask you, would you do that?
Renae, there will be little change to the pricing even though the dilution will be present. Its a simple fact unlike a reverse split or a forward split which directly is correlated to price, share issuances are done and the only change is to the market cap. Eventually people will notice when 10Q are filed or the company announces earnings and the number of shares outstanding are shown. Its part of the shell game that the penny stock operators and Wall St. in general play.
The real answer is she is being sold a bill of goods by the CEO of the OZOP right now. He's a penny stock pusher who makes money duping people. If you look at several of his other deals they've blown up and often involve the same kind of lenders that are burying the stock right now. No real business person would take on that much debt without any reason.
No, no you don't. There are no formal limits on how many times a company can perform reverse stock splits, but there are practical limits. The company must maintain at least 500,000 outstanding shares to stay listed on the NASDAQ and 200,000 to stay on the NYSE. Each reverse split reduces the number of shares a company has.Jun 26, 2018
Reverse Stock Split Rules - Budgeting Money
There are no restrictions on the number of reverse splits a company can do or the by timing. They have to be approved by the BOD or by proxy. They file the necessary paperwork and then that gets rubberstamped. Its rare for a company to do more than 1 in a year, but if the noteholders continue to convert they may have to make that decision when the actual acquisition is completed.
You clearly don't understand. You are going to be diluted by 3x. Geez, you don't get it. She is getting 3x the amount of shares issued for her company. So at the current price, they are valuing her company at a notch under 6 million dollars based on today's price. I realize this may be more math than you are used to doing for a penny stock, but that would be less than 1/2 its current sales price. Even if they do a reverse split, as long as the convertible notes are out there it will get blasted down to oblivion. Each time is happens successively faster because people won't jump in like they did the first reverse, second reverse, third reverse.
They purposely make this stuff complicated so the average investor doesn't understand what is happening and then they have their team of stock cheerleaders hoping to sucker in investors who don't know what's happening just seeing a stock rising on some minor news with huge volumes. Having done many shell transactions, the usually deliverable is 95% of the shares. This is a way for them to get the shell without anyone realizing it. My guess is the shell didn't cost anything because they are assuming the debt. The original team is glad to be off the debt books and having collected $1.5 million over that time in salary and probably other compensation (can't really be sure about that, but it wouldn't be surprising)
Det, your off by a little bit. Here is the info direct from the 8K
Shares of the Company’s Series D Preferred Stock, pursuant to a certificate of designation to be filed prior to closing the Acquisition, will have the following rights and preferences: (a) the shares of Series D Preferred Stock shall convert into three times the number of shares of Company common stock outstanding on the conversion date, and (b) the Series D Preferred Stock will have no dividend rights, no voting rights, no liquidation preferences or other preferential rights.
So if there are 300 mil OS on date of conversion, Chis will get 900 mil shares bringing total OS to over a billion. As of May 11, there were 257 mil OS. By now that number is probably much closer to 300 mil.
Pegasus, you're living in a dream land. Now you want 5-10x sales? Why not 100x? First off they still have to deal with the $1.5MM in debt on the books. That's 10% of their sales right there. The company has been in business over 20 years and only grown to $14MM in revenues. So what is their growth rate realistically speaking. The person who was the driving force behind the business is no longer with us. So unless you see some sort of miraculous growth from three years ago until now, then your high growth idea is again a pipe dream. Until they file the audited report from their acquisition of PCT there is simply no way of knowing anything about their financial performance.
The TA isn't the only one who can have the amount of shares changed. The company just has to send a letter to the OTC and they will update the listing. Its that simple. They are purposely not letting people know about this, nor have they put out an 8K that shows all the share issuances which is a violation of Regulation FD. If you think they are looking out for you the investor, you need to look at the reality.
The agreement calls for the CEO to get 3x the number of shares outstanding. Currently that is 257,000,000. So she will get 771,000,000. That gives you 1,028,000,000 shares. So there you go. Now if the noteholders continue to convert at .00189 that number can go significantly higher.
Whiplash, I don't know where you get this 5x sales number, but the top S&P companies trade barely at 2x sales. What if you found out that this company was doing $20MM in revenues 3 years ago and has been dropping ever since? Would your expectation change. The 2x sales number is for top performing companies. Companies that are not top performing have even lower price to sales ratio.
Bidding and winning are two different things. Also they are purposefully deceptive in their releases. If PCTI was making real money, then they wouldn't merge into a shell that has $1.5MM in debt. That's like jumping into a freshly dug grave and having them back fill it while your in their. It makes no sense. All these release are doing is making the noteholders richer than they already are. They are collecting almost 4x their money on each one of these news items. Their current conversion price is now .00189 now do the math. On top of that there will be a 3x increase in the number of shares as soon as the merger is completed. So your looking at over 1 Billion shares outstanding again. All while still having $1.5MM in debt. You have no way of knowing how much profit PCTI is making. How long before they have their required audited financials done. Where is the 8K on the "new" investor that is taking out all the noteholders? So if you want to play for fractions of fractions go ahead.
Its called the greater fool theory. They are posting this stuff that's been out there for months hoping some other idiot buys in and gets them out. Their last government contact was for a total of $25.6K. Even if the revenue figures are correct, they are probably making very little income. Here is a company that's been in business 20+ years and has only grown to $14MM in revenues in what is purportedly a high tech business with multibillion customers. So what they sell is rather small to these folks businesses and with 250MM in shares outstanding not including whatever is going to be issued in the next couple of days/weeks its hardly worth a penny.
The CEO said there were 200 million shares outstanding and that the 10K would outline this new investor who is purportedly buying the convertible debt. The 20 and 30 day look backs mean that these guys can completely obliterate the price. This is a terrible joke. 250 million shares have been issued in slightly more than a month. This will need another reverse split again and with these new notes out its going to be a repeat again. Just some different players.
Here's the real problem. The CEO says its hard to get the small note holders on board because they can convert and sell. Well the company could just pay those small note outright and not have them converted at all. That was the plan he was hinting at but clearly that's a bust.
Well that press release was super deceptive when you consider that the amount that is still left held by the sharks is $1.5MM still. What good did this do? Nothing but open the door to lower prices
Congratulations. All you buyers who claim to be buying big volume. The stock has now made a 52 week low for 5 straight days. How low will it go before they reverse split this again and start the process all over? Lather rinse and repeat. New conversion price is now .003444. So kudos to you to helping these guys more than double their money at every turn.
I'm not an accountant so I don't know, but I can tell you that their is negative business advantage to doing that. Let me ask you Jerry, would you buy a house if you also had to pay the owners creditcard debt? The only way that would make sense if the price was so far below market that it covered that debt plus. You are assuming unnecessary risk and getting what in return?
I said the exact same thing. A clean shell can be had nowadays for $300-400K with 95% of shares delivered. They could have filed to go public without doing an registered offering. There were plenty of ways to skin this cat. The one way you don't want to go is by buying a company with $1MM in zombie debt. It make zero sense for a supposed profitable company to take this on.
and for every buyer there are more sellers, that is why the stock is down 50% for the week. So how much are you down now?
Lost 50% of its value. That's hella strong performance. Oh made a new 52 week low. I don't think you know what strong means.
it may touch there, but I don't think it will close there. A lot will depend on if the CEO can drum up buyers into the stock. Get it at these bargain levels...yadda yadda yadda. you'll never see these prices again. I swear we have all the debtors locked up for 90 days. Etc.
The only way they will get the lenders to lay down is if they are offering way about a 58% markup to the their notes. There are always plenty of suckers to buy penny and sub penny stocks on the hopes of finding that one that goes up to the moon. This ain't one. You have no idea how many shares have been issued because the company hasn't properly filed their 8Ks. They were called out by me for not informing the public that they were disclosing their news in violation of Regulation FD. The lenders don't care. They have already made their money and playing with the house. Until you know what you are getting in revenues and profits from PCTI, you basically are hoping for a miracle.