Hangover Joe's Holding Corp. (fka HJOE)

[I-Glow]

There are no new rules for Toxic Lenders from either the SEC or FINRA - this is just another forum myth!

I noticed the Daisy Chain Gang got very giddy - but they didn't understand the unintended consequences from the convertible notes fantasy.

Most of this nonsense was started from some ambulance chaser trying to obtain more business: Mark R. Basile - https://www.thebasilelawfirm.com/single-post/2018/04/12/THE-FRIDAY-THE-13TH-CONVERTIBLE-NOTE-MASSACRE

This guy is clueless about Securities and certainly doesn't understand how the 3(a)(10) exemption scheme works.

Below is a excellent analysis from TenKay about the convertible notes.

What is your basis for any of that? There is no indication that anything substantial has changed with Alpine in any immediate sense based on the SEC summary judgement handed down recently.

Other than some penny stock attorney trying to drum up some business with his version of a penny stock conversion armageddon article, and observations made on ihub from some that don't understand what the SEC action was about...nothing fundamentally changed on Friday.

The SEC didn't even put out a press release on the summary judgement and Alpine has said nothing themselves.

There has been an awful lot going around about this issue which likely started after a pretty straightforward summary judgement against Alpine the SEC got related to issues with Alpine’s SAR reports.

That got morphed into new “regs”, “rules”, “standards”...that were suppose to hit last Friday. Only problem is there is no evidence of such. No comment on anything by the SEC, nothing from FINRA and even Alpine has said nothing. In the meantime lots has been written predicting everything from a complete stop in note conversions across the OTC, a huge short cover (which the most recent article is focused on), or some other Armageddon result that will see riches bestowed upon penny stock investors previously at the mercy of those evil toxic finders.

Of course...nothing has really happened since Friday..

None of the pieces written about all of this are particularly authoritative and some are very self serving like the Basille Law piece trying to drum up business.

So what is going on?...since something this widespread in discussion must have some element of truth?

Well for years now, getting penny certs cleared has been getting more and more difficult. The Clearing firms are asking for more and more info and that is a good thing. This may also explain the uptick in 3(a)10 stock issuances which a court order supports...making it much less risky for the clearing house.

Also Alpine has apparently started or is planning to only allow clearance for penny stocks above one penny. Since the are a major force in the clearance of penny certs this could have an impact...but may also see a rash of reverse splits in the process...cue TC’s “not planning on one”....

In the end I think ANY restrictions on the ability of penny stock financiers to flood the market with stock is good. But before anyone breaks out the champagne as a penny stock investor holding a diluting ticker...it is important to realize what this actually means...no more money to sub penny tickers reliant on selling convertible debt.

That will mean the end of the gravy train for diluting CEO’s and the tickers they are using to do so.

IG