Cuentas Inc (CUEN)

[Arthur]

Well, first NXGH came into being by merging with the rotten PLKD shell, which is quite a red flag from the get-go.

Then they were unable to pay PLKD debts for 2 years, which is bizarre for a company that pretends to be in high finance.

At the time, they were issuing loud PRs saying that their subsidiary NextCALA was to issue 30,000 (or was it 30,000,000?) prepaid credit cards. That fas a spectacular FAIL. No debit cards were issued.

https://www.otcmarkets.com/stock/NXGH/news/Next-Group-Holdings-Subsidiary-NEXTCALA-Signs-Joint-Venture-Agreement-with-Glocal-Payment-Solutions-Inc?id=133611
https://www.otcmarkets.com/stock/NXGH/news/Next-Group-Holdings-Announces-Agreement-With-InsightPOS-to-Fulfill-Exclusive-8800-Stores-for-Cash-Register--Financial-PO?id=139215

In 2016, all their $1M revenue was coming from one single subsidiary, one that they acquired for $1 from their founder. 3 or 4 other highly touted ventures failed in various ways. Companies they acquired in no-cash transactions were being given back to their previous owners, for various stock-based considerations.
(see my previous posts)

In 2017 NXGH "acquired" LimeCom, in an extremely strange transaction.
You see, NXGH acquired LimeCom for $2M "cash", but the $2M to be paid 8 months after the acquisition.
Furthermore, the transaction will be rescinded if LimeCom fails to generate $125M of revenue.
Also, LimeCom keeps its current management (basically operates on its own, in Italy).
Oh, and at the same time, LimeCom was lending NXGH a bunch of money, to refinance the old PLKD debts. How cool is that, the company that you're "acquiring" with no money down is also lending you money because you're broke, and at the same time the anticipated profits from the operations of that company will serve both to acquire it, and to repay the loan ?

As I see it, NXGH has borrowed ownership of a $125M company for 9 months, and after that the transaction will be rescinded, and NXGH will still be as broke as they were.

Of course, meanwhile NXGH is "acquiring" other companies, non no-money-down rescindable transactions...

That's why I call it smoke and mirrors. They seem unable to actually run a company, they're just shuffling dummy acquisitions around to give the impression that they're a big company. While being broke. And paying everything with dilutive NXGH shares.