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Re: Huggy Bear post# 58470

Thursday, 01/18/2018 4:36:44 PM

Thursday, January 18, 2018 4:36:44 PM

Post# of 107737
THIS is obfuscation:

From Q3 2016 to Q3 2017 the outstanding shares went from 36 million to almost 1.7 BILLION.


Making it sound like this is a 400m share per quarter problem is patently inaccurate. The reality is that 1.6 of the 1.7b shares happened prior to Q2-17. From Q2-17 to present the diluted shares have been much more modest.

The company has to pay its bills somehow. A common way of doing that in OTC circles is to trade shares for services (aka dilution). The problem comes when expenses are crazy high, or the relationships with the lenders is predatory. I have a lot invested here, so I am KEENLY in tune with this. I believe that Yazbeck has this under control, and dilution is controlled and limited to the amount required to run the business.

Soon enough we will get traction, and sales will scale up to the point of us being Operating Cashflow Positive every month. At that point, this practice won't be necessary. For now, it's a necessary evil. I suppose I should throw in the requisite "IMO."

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