Cardinal Resources Inc fka CDNL

[gitreal]

I have been told that it is common practice for management of OTC companies to award themselves shares in lieu of salary, bonuses, or past debt, and it shows up on a Form 4 as an acquisition. The SEC likes to see a footnote on the Form 4 indicating that it was in lieu of salary, etc. but apparently they do not enforce it. They assume that the company will explain it in a filing....and we know what that situation is here.

So, it becomes a promotional tool as well - it appears to show a member of management that is so confident in the company that they are willing to plunk down cash to buy shares. When in fact, it is essentially free shares, and no cash changed hands.

Again, no filings to clarify, so all we can do is speculate. I admit I could be wrong........but until someone proves me wrong, I will go with my explanation.