You're welcome. I've seen this strategy used several times over the years on different tickers, most of which were big board companies or companies that eventually up-listed to a higher tier.
It can be a lengthy but effective process that allows insiders to closeout all outside debt and use their own funds for credit lines to the company. In other words they own the entire company including the debt.
The green flag to buy was once insiders paid off all outside debt, created lines of credit, and backed it with preferred placements using their own money.
It should take a few quarters for the true potential to be reflected in filings and so far from the last 2 quarterly reports, I feel very comfortable with my investment here.
We have to remember that it's still considered a high risk but the way I see it is, the management running the company have been down this road before and so far have taken all the means necessary to secure success.
They experienced I believe over a 50% increase in revenues YOY for the period ending in March. And even though expenses increased on a dollar scale, they decreased on a percentage scale which indicates solid growth.
The most accurate eps after the restructure was reflected in the last filing as well. They were at just about breakeven which strongly indicates a strong positive eps should be reported for next quarterly filing.
We can speculate a forward split to accommodate acquisitions needed for growth and estimate the company will eventually be able to handle up to 250 million common shares outstanding and a $3+ pps on a fully diluted basis.
Not happening over night but well on track for a NASDAQ or NYSE up-listing and exponential growth.
