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Faceless Man Response from CDNL board.

Well, I hope the longs start taking this into consideration. I think their dreams of this hitting bigger numbers will take much longer than anticipated. 500 million is a hell of a lot to bring down with such a low market cap.

The number of any companies shares in the market really has little to do with how far a stock can run. Especially on the OTC. Pinks & OTC stocks are a group of weak start up companies which rarely have a product, revenues, or profits. What they have is a business plan and stock. CDNL is an exception as they do have a product, & revenues, looking for profits buy raising capital in funding deals.

The number 1 most important thing for a start up is capital to take that plan or product to market. Only way to do this without the financials of a big board company for bank funding is to issue shares for the needed capital to build their company.

This is why it's so important to find new funding deals and new shares being issued with OTC companies. VC's fund start ups, because bank fund requirements can't be met. And VC's (Venture Capital firms) fund so they can sell the shares they get for funding at profits. Most of the time the VC has little, if any, expectation the start up can or will fulfill the loan requirement. That's why you often see OTC stock prices dive just before a new funding deal. The VC needs price to be very low so when they start selling they have room for a large run. Actually 80% of the time OTC funding gets renegotiated when the company gets so far behind in payment their loan is considered uncollectable. Then the VC gets another round of cheap shares to sell.

The norm of OTC funding is a known bad loan when a VC issues the loan. They make their ROI (return on Investment) from creating a stock run and selling the funding shares they received for funding, into the create run in the open market.

So here's the kicked: I find funding to trade, Not good stories. Because if funding took place, there are shares needing to be sold so the VC can get the profit for the cash they GAVE to the company. This is the OTC. The company gives shares for cash. The loan document and payment requirements unexpected to be fulfilled. The VC spends a % of the loan cash buying the stock price higher. Say the VC gave the company $250k they spend say $25k more buying the stock higher at ask. It's considered part of the original investment. OTC retail sees the price pop, and the company management reports news that the cash influx will build their company toward success. The "story line" which is sometimes a behind the scene agreement to get the VC cash. Management will support a run with positive news releases. (PUMP for their funding)

The combination of price pop & new good news, gets retail to jump in and buy the run. The VC's get 2x to 10X profits on their loaned cash shares. Feeding retail emotion. Once they sell all the shares they have. There is no one selling higher any longer because there is no single long & strong retail guy which has hundreds of million shares like the VC had. So the ask dries up and the bid starts wining. Bang the crash starts as long & strong's eventually try to get what they can on, the way down.


RESULT: company gets needed capital. VC'S get huge profits, retail get a bag full of losses.

The above is general info on the how the OTC operates. CDNL is an exception to this in some ways and fit in in other ways. So far all the price move seen in CDNL's stock price has been retail. IMO. I have seen NO large volumes involved yet. The average daily volume is around 15 mil a day and that's only 3% of the 515 mil OS. VERY SMALL !! So I'm looking for the general OTC game to start sometime in the near future. I'm GUESSING we'll see at least larger ask/bid prices and volumes when the timing is seen "as correct" by the VC's. We know the reported funders have 73 mil (21.5 & 51.5 mil) and some one; some where; out there are another 227 mil unreported shares floating around. I'm counting on this to eventually drive a strong run continuation. To date M&Ms have been closing small trades in the 1k share to 100k sizes. That's only $150 to $ 1,500 trades. Indicating ONLY little guys being involved. The big guys are yet to show their face.

Potential is strong.