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Maybe GGII/Hempacco was a bad example. My point was that there were many reverse mergers with legit companies that have taken place just last year, and in the past. HGYN will not be another Hempacco.....we only have 74 milly shares outstanding with over 50 million held by the company. They are not going to reverse split their own shares. No reason to. We have a very small piece of the overall pie here. They would be giving up way more ownership had they done a "proper IPO". They are a multi billion dollar logistics company and do not need to raise capital like other companies that IPO. All Hong Yuan wanted was a U.S. listing.....and they will achieve that with a reverse merger.
Correct. The merger has not been finalized yet.....as the logistics company and all of the subsidiaries have not been rolled into HGYN as of the filing. Until all of the i's dotted and t's crossed.....this is the srandard language we will see until the official 8k.
LMAO it is standard language in every filing until the 8k merger filing......everyone knows that.
https://news.bloomberglaw.com/bloomberg-law-analysis/analysis-reverse-mergers-reach-record-high-even-without-spacs Hempacco is a legitimate company.....worth $4.6 billion and they were the largest non SPAC reverse merger last year. Why did'nt they do a "proper IPO" like all companies do? There were many other non spac reverse mergers with many average deals being in the over $400 million range. Why did those companies "hand ownership" over to those "pie in the sky" shell investors ? They must have been "out of their minds".
Well, everyone has their opinion. Only time will tell.
David Lazar was the shell custodian and he has done many Chinese reverse mergers.......companies that actually operate in China. Highly unlikely that a company in China named itself Hong Yuan in an effort to fool investors. I remember that one poster on this board made a ridiculous effort to post how many companies were named Hong Yuan to prove a point......not realizing that all of those companies named Hong Yuan were subsidiaries of THE Hong Yuan.....which is the multi billion dollar company. Does anyone remember that? LOL.
If this was a pump and dump.....i'd say that they did a bad job at it. The company has'nt said so much as a word to pump it and there have been no paid promotions......so where is the pump? The low share structure has remained the same so where is the dump?
Yeah, I mean...... I think I just literally covered all of that. Why the repeat?
This is a holding company......which means there will be a number of companies under holdings. I believe that the logistics company will be the main company under holdings, but there will be other subsidiaries as well. This would fit in with the model Hong Yuan has in China. As far as the company "handing ownership" to HGYN shareholders.....retail shareholders represent a very small piece of the pie when you look at the share structure. 74,641,276 shares authorized (they are keeping shares tight until the RM announcement) 74,640,766 outstanding, 51,826,200 restricted (majority of common shares held by the company) and a paltry 22,814,566 shares in the float owned by people like you and me. This is hardly what I would call "giving up ownership"......in fact, the company would be giving up MUCH MORE ownership than that if they were doing an IPO, or SPAC. Hong Yuan does not have to raise funding with an IPO like many startups. They want an American listing because China views American listings as being "prestigious". Thus, a reverse merger was the best way to achieve that. I believe the reason for the delay we have been experiencing unfortunately, is due to the Covid variant situation in China. They are on lockdown and it is affecting all business.....especially logistics. This is a waiting game, but things will return to normal and I believe the wait will have been worth it.
You may be right. I will have to check with my accountant. Thanks for the info...exciting if true.
Unfortunately, the forward split shares will be short term capital
gains taxed.....unless one plans on holding the forward split shares for over a year.
Who is the IR person? Does anyone know their name? Who operates the IR Twitter?
Speculation.....especially in reverse merger plays, are the name of the game. Your speculation concerning WAX being the merge-in company to GOFF is as good as any i've seen. Firstly, the forward split of 3 for 1 is a decent sized forward split....and would'nt have been done by a fledgling start up, but a company that already has substantial value. A start up just would'nt do that. Secondly, George Sharp has been speaking of his desire to retire soon.....that tells me that he is looking to make some big deals with his remaining custodianships. These are good indications of the future GOFF will bring.
i did'nt really even bother to look at it's trading history to be honest, I just saw the ridiculous spread and did'nt see where there was profit to be made, like in the past.
Once again.... look at the ridiculous spread. Low float it seems but over 300 million shares outstanding. Where is the profit to be made? The "sophisticated investors" who were probably loading on the cheap while it was in the expert motel probably know....
I have been holding Goff for a long time....I think it could be one for the record books if it plays out right. GLTY
Yes....those would be them. Obviously, their pumps are not working. We have seen it all throughout fall....usually THE best time for OTC trading, it was just plain depressing.
And there are 3,856 OTC stocks that now reside in the Expert motel. You are right, I remember when I first found out about the new SEC amendment and proposed rule changes....many were saying that it would be a "good thing". I knew it would'nt be and I warned people for a long time. Often, people do not react until after the fact. Now, many on Twitter are complaining that the OTC is dead. Some are still saying that it's going to come back and "get hot" again. Unless the SEC reverses course and ends this corrupt expert market, opens up all of those stocks for trading....I do not see the OTC making a comeback anytime soon.
You are both right. You are correct in the fact that reverse mergers are a great route for crypto/blockchain/NFT companies to go public. If the SEC had not enforced this new amendment (15c-211) that screws over OTC investors, especially reverse merger plays....it would be an exciting time for the OTC reverse merger market. However, the SEC has enforced this new amendment and created an expert market where most of these shells now reside. Even if we see a reinstatement happening and a shell catching up on all of it's filings, we are unable to touch it. We must wait until all filings are caught up and it is off the expert market (where "sophisticated investors" already loaded up cheaply) and by the time it reaches our market.....we will probably be paying too much. In other words, the days of 1,000% runners (and more) are over. The SEC once again, screwed the little investor. They did'nt like the fact that we were making so much money on these plays. All I can say is....hold on to GOFF because this may be the last of it's kind.
I often believed that custodianships/reinstatements/reverse mergers were the heart and soul of the OTC. I specialized in these plays. They were my niche, so to speak. When you look back historically at the OTC markets, they were often the biggest gainers. Many players would often take the gains from those stocks and reinvest in other OTC stocks. This is a big reason why the OTC is in bad shape now. The SEC reached right into the OTC and pulled it's heart out.
Agree, it's very depressing. I remember for years many OTC traders saying they would never do it.....they'd never kill the OTC market....but they are doing it. It's happening.
I was having a discussion with someone, it might have been you or someone on Reddit. From what I understand their was a large group of OTC investors that protested the changes when they first came about.....but to no avail....they went through with the market killing regulation anyway.
I have begun tweeting the OTC.....I wish others would join in. They know the damage the SEC has caused. They need to negotiate to reverse course. It has destroyed their market.
Agree 100%.
Exactly....
Yes, I know. But regardless of what regulator's focus was.....they mangled our market.
Usually, fall/winter is the best time for trading OTC penny stocks.....we see lots of runners. This year was pathetic. There were a few runners but nothing great. You are right, BB.....they wanted to kill it and they did. God bless anyone keeping a positive attitude that penny stocks will return, I just don't see it.
If i'm being honest, unless the OTC markets negotiate with the SEC to undo some of the damage they've caused.....the future looks bleek.
Yes, but that "collateral damage" killed what were once the biggest gainers historically, in the OTC market. Custodianship, reverse merger plays were the heart of this market. Reinstatements, custodianships, triple and double zero stocks that ran hard....many times revolved around reverse mergers or potential reverse mergers. The damage done to the OTC was NOT worth it.
Exactly....
I really think it is just a matter of time until the OTC is done, altogether. We outperformed the big board stocks for too long and the powers that be are thinking that if they do away with the OTC.....that money will flow to the big boards. Like everything else these days....it's all corrupt.
"What traders think are fun and makes them the most money means nothing to the idea and purpose of the markets" LOL this sounds like something an SEC hack would say. It does'nt matter what your idea or purpose of the markets is.....if you have no investors/traders, you have no market. Over regulation is never a good thing in any market, and the OTC was never meant to be like the big boards. "I like the idea of researching and finding low level cap, with a future". ROFL good luck with that.
"They needed a way to fix the OTC, not having every ticker a triple 0 pump and dump waiting to happen". No more stupid shell merger plays, no more ridiculous custodianship plays".....those "stupid shell plays" historically, were the biggest % gainers on the market. Many people made alot of money off of "ridiculous custodianship plays" and triple zero stocks. These were the plays that made the OTC speculative and fun. The SEC "fixed" the OTC alright. It is a ghost town now. "OTC should be capital for small upcoming companies". That's not why most OTC traders are here. Most of those "small upcoming companies" need to dilute heavily before they ever become successful and will do their share of reverse splits. Marrying an OTC stock long term because you want to see a company grow (and see yourself lose money) is not an appealing deal for OTC traders. The SEC did'nt understand the OTC and it's trader's mindsets. I would rather invest in big boards. These new regs/amendment killed the OTC. Period.
"That part sucks because by the time most can buy, they'll be up 500% to 1000% on low floaters". Precisely. Those are basically the types of profits WE used to make when those opportunities were open to us and there was no expert market. That is why the expert market is so corrupt. Those "sophisticated investors" are stealing what used to be our gains! This is why I am out of the OTC. I am now holding my last 5 or 6 plays. These are plays I believe in and I have been holding since before the changes. Until the SEC reverses course to fix what they broke....the OTC is just not worth it to me anymore. Not worth the time or effort.
You are 100% right on....
I agree. I wish the SEC had your insight.
And end the expert market. There should be no dark market where certain stocks are made available to certain privileged individuals (and Canada lol). Great post.
I agree with everything you said, with the exception that I believe there is good and bad, positives and negatives with every investment. I believe adults should take responsibility for their own trades. There was nothing wrong with the old system. You do not wreck an entire market to protect individuals who cannot comprehend that a skull and crossbones is a risky investment. I do like your idea pertaining to paid promotions. That would have gone a long way concerning investor protections. I still feel that the expert market is corrupt. With the OTC being on life support right now....i'd like to see the SEC reverse course but I am probably wishful thinking. I think OTC is done for good.
Unless the SEC sees how incredibly bad they have screwed up (and if they even care) and reverses course.....I think it is ruined for good. I don't see how it can come back. Incredibly infuriating.
Interesting take.....and you may be right, still does'nt change the fact that it killed the market. I'm sure there was a better way.