Global Poletrusion Group Corp. (GPGC)

[dano9008]

Hello, I think there is no mystery about the share increase following the reverse merger and reverse split with Sebastian River Holdings (or whatever it was called). Sebastian River Holdings was a POS with no real value. It had net debt and was kind of questionable. Somehow they managed a reverse merger with Novacab and all they had to offer were shares, so of course there would have to be new shares offered to give to the pre-merger owners of Novacab to represent their ownership. NVOB doesn't have toxic debt and the quarterly reports seem to show they actually use part of their profits to pay down debt (what a concept). As part of the merger with Sebastian they took on some debt of Sebastian in a seemingly nontoxic way and they issued preferred shares which are convertible. So, there is some dilution risk represented by those preferred shares. In accumulating down here I am betting in part that the holder of those preferred shares will wait until NVOB finds its legs and rises with volume before converting - that's my hope anyway.

That's my take from memory, consult the old disclosures to get it exactly right. I think we have a real company, with real profits, and growth potential. There is baggage from the proceeding POS in the form of those preferred shares, but it seems more logical that we get a significant rise first.