Ubiquitech Software Corp (UBQU)

[mess124]

Smokey, what's up with this dilution?

Way worse than I realized, but hope you guys that have been here longer than me are right in that dilution is almost complete and that mgmt will not dilute more.

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https://www.benzinga.com/general/biotech/17/01/8960715/the-420-investor-looks-into-2-marijuana-stocks-that-seem-overvalued

Ubiquitech Software Corp

The second stock that Brochstein looked into was Ubiquitech Software Corp
UBQU 11.7%
, which entered the cannabis industry via the acquisition of Hemp Life Today, which makes canabidiol (CBD) oil.

"They don't file with the SEC, which is always a red flag to me," the investor pointed out. In addition, two other things caught his attention:

Ubiquitech recently paid 10 million shares to a company connected to MarijuanaStocks.com for promotion.
In a recent filing, the company disclosed that, in September, there were 45.6 million shares converted at $0.001; and then, in October, another 30 million shares were converted at $0.001; and then, in November, another 15 million shares were converted at $0.001.

"There is another filing where they actually discuss their outstanding convertible notes. If this was it, and it was done, maybe it's not the end of the world, they just added about 90 million shares. But, there is a lot more ahead," he cautioned.

"On their balance sheet, they show long-term debt of $901,000 as of the end of November, and it's all convertible at $0.001 so, I figured it would add 900 million shares if they converted all that," the expert supplemented.

"So, this just looks like a pump and dump, and, once again, the public is out there paying $0.02 to $0.04 per share as the stock promoters run it up and the company says all these great things. But, other people are effectively buying the stock at $0.001. I don't get how that even happens,” Brochstein concluded. “The retail price, where the stock is trading, and the wholesale price, where the financiers are getting in — the spread is just huge — If these people can buy stock at $0.001 and sell it at $0.025, that's 25 times their money! That’s why you need to be careful, because the likelihood is, especially with 900 million shares potentially coming out, that these people are going to continue to just convert the debt and sell shares."

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