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Re: turbo29 post# 6383

Wednesday, 07/18/2018 3:15:49 PM

Wednesday, July 18, 2018 3:15:49 PM

Post# of 6596
They don't need the stock to go up in order to make money. With dilution, they can make money by selling shares at any price. If the stock goes up while they are selling, then it's an added benefit.

For instance, the company can dilute by converting their preferred stock into shares.. here's a snippet from one of VCPS' 10Q's showing the dilutive properties of each class of preferred stock that they own:

https://backend.otcmarkets.com/otcapi/company/sec-filings/12493099/content/html#FORM10-Q_HTM_A_006

NOTE 5 – PREFERRED STOCK

Series A

Series A Preferred Stock consists of 40,000,000 shares, par value $0.001. Series A stock shall have 100:1 voting rights, no conversion rights, and no redemption rights. The Series A holders are entitled to dividends if declared and have no liquidation preferences.

During the three months ended May 31, 2017, the Company issued 4,000,000 shares of Series A preferred stock to settle $40,000 of accrued payroll due to the CEO. The fair value of the shares is determined to be $180,000 using the weighted-average stock price during the three months ended May 31, 2017. The surplus of $140,000 is recorded as stock based compensation expense.

Series B

Series B Preferred Stock consists of 40,000,000 shares, par value $0.50. Series B stock has no voting rights and is convertible into common stock at a 50% discount to the average of the lowest three trades in the previous ten days before conversion. There are no redemption rights and no liquidation preferences. The Series B holders are entitled to dividends if declared

Series C

Series C Preferred Stock consists of 20,000,000 shares, par value $0.001. Series C stock shall have 1,000:1 voting rights and is convertible into common stock at one for ten shares of common. There are no redemption rights and no liquidation preferences. The Series C holders are entitled to dividends if declared

On August 31, 2017, the Company issued 10,000,000 shares of Series C preferred stock to settle $30,000 of accrued payroll due to the CEO. The shares were valued using the closing price of the common stock on August 31, 2017.

On November 30, 2017, the Company issued 10,000,000 shares of Series C preferred stock to settle $10,000 of accrued payroll due to the CEO. The shares were valued using the closing price of the common stock on November 30, 2017.



If you read the description for the Series B preferred stock, the company can convert their preferred B stock into common shares at a 50% discount of the current price of VCPS. Even if VCPS is stuck at 0.0001, the company can still convert and sell shares for 100% profit.

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