Umax Group Corp. (UMAX)

[slayer1]

I won't do full DD for other people because if you're playing this game you need to do it yourself but the 8k has the following information to shed light on the obvious dilution:

Blackbridge can only purchase shares every 10 days but also only in amounts at the LESSER of $200,000 OR at 150% of the average trading volume across 10 days multiplied by the lowest price of the stock in that 10 day period prior to delivery.

This amount may not exceed 4.99% of the total outstanding stock.

Shares are bought at 83.5% of the lowest trading price in that same ten day period prior to the execution which is following the draw down request (written notice).

It should also be noted that: "Subject to the terms and conditions of the Securities Purchase Agreement, the Company, at its sole and exclusive option, may issue and sell to Blackbridge, and Blackgridge shall purchase from the Company, the shares upon the Company's delivery of written notices to Blackbridge."

Blackbridge is not allowed to freely purchase shares as typical with convertible financing, UMAX must request the purchase and may only do so every ten days.

"Once the company becomes fully reporting said EZ Pass facility is available."

This isn't really a scam, there's dilution here but compared to real scams this isn't that bad nor extremely toxic. Ultimately the growth and revenue offered by the EZ Pass facility will be greatly worth the current dilution. I'd expect more news out of this one soon.

US Toll revenues are $13 billion annually. (2013)
src: IBTTA, based on publicly available
data, 2015

EZ pass customers contributed nearly $101.7 million in 2013 for Washington D.C/Virginia's Dulle Toll Road.
src: http://www.metwashairports.com/sites/default/files/archive/mwaa.com/file/DCAC_DTR_Revenue_Collection_System_12-02-2013.pdf