While I certainly understand the frustration at PRs that suggest good things, but never materialize, how is RXSF different from almost every other OTC stock?
Most put out these "fluff" PRs to dump shares, especially those with toxic debt. Toxic lenders won't provide more funds if they can't convert their loans. And paying back the loans with 100%+ annual interest rates is better than dumping more toxic shares, but it also just increases the toxic debt and pushes the inevitable dilution further out.
Surely you can't be surprised they're not doing a buy back. They have a large liability hole. Where would they get the money to buy shares? And they've issued insiders a ton already. Who's going to pay for something they have and can get for free?
Every OTC company with toxic debt eventually drops. It's the nature of the beast. They are selling equity at half off (or more) which can be presold for a guaranteed profit. They're not called "death spirals" for no reason.
Lastly, I don't know what the company could do differently, other than actually close deals. But looking at their balance sheet, they'd need a large cash infusion, on non-toxic terms to do that. Who in their right mind would provide that cash? Bankers and even VCs need SOME evidence of being paid back or making a return. With a shell, the company can hunker down and pump away and survive without much cash. But when you're a manufacturer with expensive management, you need a continuous supply of cash just to keep the doors open.
This is why I urge EVERYONE investing in a company to READ THE FILINGS FIRST. Look at their income statement, balance sheet and cash flow. THEN go and look at the PRs and "news". Sound too good to be true? It is then. Future predictions seem out of line with the past results? Count on them not coming to pass then.
I'm not defending the companies like RXSF that put out fluffy PRs about the wonderful future while allowing toxic lenders to dilute like crazy, but I also believe a little time looking at the filings and past predictions/results would prevent a lot of losses and regrets.
“No one in this world, so far as I know — and I have searched the records for years, and employed agents to help me — has ever lost money by underestimating the intelligence of the great masses of the plain people"
H.L. Mencken
