Is anyone else concerned about there being 1 BILLION shares authorized and already promised to be issued?
As of June 30th Supplemental Information filing. There are 1 BILLION shares authorized, of which
484,920,485 have been issued but only 135,000,000 are in the float currently, though it appears the other 350,000,000 shares will be able to be traded shortly.
More concerning is that another 577,523,089 of the available 1 BILLION have been promised to be issued in the "future" without listing a date (could therefore be any day) and with no restriction mentioned. More troubling is the statement they filed with it:
"The Company was at least arguably in default on a convertible promissory note issued to Sign N Drive Auto Mall Inc. However, it has since retired that note in exchange for the promise of future issuances of 577,523,089 common stock."
WTF? How does any publicly traded company say they are "at least arguably" in default and promptly promise to give away OVER HALF THE COMPANY. Any normal business owner would seemingly "argue" about this, if not straight up litigate it. This doesn't quite add up. (Who gets those shares? Could this be shares promised to a Charles Vaccaro?)
Before anyone gets too carried away, I agree its a Real company, with Real Product, in fact - the products are available at a store in my neighborhood. However, the math makes it look like we might all get jobbed on this one.
500 Million shares dumped at $0.05 gets this individual $25 Million, (with the full 1 BILLION shares authorized being worth $50M) That is a very nice retirement for anyone, just sit back and let your 3% dividend deliver you at least a half million a year.
For the rest of us that might get stuck -- how much does this company need in revenues to make the stock give us a nice spike? IF they manage to triple their revenues its approx. $36M /year. Multiply x 15 for a regular P/E and at 1 Billion Shares it works out to around $0.54. (Not exactly big board numbers.)
Is anyone else even concerned about this Billion Share situation?
