SoOum Corp. (fka SOUM)

[Ed the Trader]

"rumors floating around to the effect that SEC is tightening rules on how company can use A/S to dilute (attain financing through issuing shares).

If true, company must have secure 'upfront' cash on deposit before being able to issue new shares. Applies to Pinkyland too!!

If true, that would put a BIG crimp on company's use of this avenue for a piggy bank financed by unsuspecting investors AND curtail R/S on a whim.

Companies like SOUM would have to secure more outlying financing sources and limit use of issuing new shares.

Could this be true? Would work for me!"

If OTC Pink corporations had to have funding before issuing stock, there would be no reason to issue stock... or have a publicly traded OTC Pink ticker. Essentially, corporations would stop becoming OTC Pink companies, and existing OTC Pink companies would reverse split out their existing O/S to wipe out that debt, and never issue any new shares.

The entire reason to be an OTC Pink company is that companies with little or no revenue and assets can obtain funding through issuing stock. If that avenue of funding is cut off, the company goes away because they generally have no other form of collateral that will allow them to qualify for alternate funding.

So, there must be some additional details involved with what would be required.