The legal analysis is Nice but it changes NOTHING.
It is commendable that the firm looked at the 10-Qs and the 8Ks. But we all did that and of course, saw no discrepancies other than the standard risks associated with OTC stocks. If there were, ABWN never would have gotten any investment capital. So in sum, I am sorry but the reporting is not where the potential theft and mismanagement occurred.
ISSUE 1.
1. The pre-split trading price was .0002 per share. August 24th, 2018
2. The post-split open price was 3.00. August 28th 2018
3. If you had 30,000 shares pre-split, you should have had 1 share at a value of 6.00. 30,000 / 30,000 = 1, .0002 * 30,000.00 = 6.00.
4. However, since the stock opened up at 3.00, that means the pre-reverse-split stock price was .0001. Those of us who were in this stock pre-split knew that we could not get a share price of .0001 because the reality was, the market makers were getting a stock price of .00015, etc. August 1st, 2018 through August 23rd 2018
So I ask. WHERE DID THE 1/100 OF THE PENNEY GO FROM THE TIME THE STOCK WAS REVERSE SPLIT TO THE OPEN ON THE FOLLOWING TUESDAY.
This 1/100th of a penney "lost value" resulted in a 50% loss of portfolio value for this stock.
ISSUE 2.
The stock under the new ticker symbol ABWND was not transferred to the brokerage houses the following monday. So, the stock couldn't be moved. Was that intentional? There was a CUSP ID but no ABWND. In fact, it took until Wednesday/Thursday of that week to be able to move the stock. By then, more value was removed due to downward pressure of the market. August 29/Aug 30th.
ISSUE 3.
We were all assessed a 38.00 reorganization fee that ABWN pushed onto our backs. The brokerage houses (E-TRADE, TDAMERITRADE, etc.) who refunded the fee were actually the good guys in this situation.
ISSUE 4.
The modus operandi of the reverse split was to get the stock price up to greater than 71 cents such that the warrants could be executed. In sum, ABWN wanted a pay day by selling 7998 warrants worth about 1045.00 in revenue. This is over 8 million dollars.
So in essence, they get 8 million dollars, we lose 50% of our stock value. That really isn't very nice and certainly isn't responsible.
ISSUE 5.
Pre-Reverse Split Dilution. At the start, there were 2.4 billion dollars of oustanding shares. ABWN issued approximately 6.5 billion shares of new stock which increased the outstanding shares up to 8.8 billion shares. This resulted in a 366% dilution (loss of share value) to shareholders who had a position prior to the dilution occuring. Note that we had no notification via 8K or amended 10-Q as to how many shares were being issued during this dilution period.
ISSUE 6.
Again, all this occurred without an 8K, an amended 10-Q, or any press release for the previous quarter.
ISSUE 7.
Where are we now? Well, there is significant downward pressure on the stock primarily due to no communication from management. The stock has quickly tanked from 3.00 to .0058 as of 9/18/2018 market close.
The reason is that more dilution is occuring. It looks as though a market could not be made at 290000 shares so they are issuing more.
However, there looks to be still no takers so the stock price goes down down down.
ISSUE 8.
OTCQB. There is a minimum share (bid) price of .01 to be listed on the OTCQB. Clearly, this stock doesn't qualify. ABWN needs to be listed on the OTCQB because they can't make a market in the plain Pinks.
ISSUE 9.
Speculation.
Since the stock price is below the OTCB listing requirements (.01 per share), it appears as if there is going to be another reverse split before Friday, 9/21/2018; which is the date the symbol changes back from ABWND (which signals that a stock is in dilution, split, reverse split) to ABWN.
Now since we don't know the amount of outstanding shares because of no communication via 8K, there is really no way to tell what the split factor will be other than adding up the daily volumes... and that is at best a guess because we don't know how much is market maker sales and how much is retail sales.
ISSUE 10.
A lot of people lost significant capital on this stock. Granted, it is OTC trading and therefore technically, it is non-essential money. However, that does not excuse the poor performance of management in a publicly traded company.
For example, what management could have done pre-split is.
1. Let the stock bubble from .0002 to about .0054 just due to normal market activity.
2. Do a 2:1 reverse split to bring the stock price to .0120 and the outstanding share count from 8.8 billion to 4.4 billion.
3. Let stock bubble again from .012 to .10 or even higher.
4. Reverse split 10:1. This would have brought the share price to 1.00 and the outstanding share count to 2.2 billion. (pre dilution numbers). In addition, they could have exercised the warrants and got a significant operating capital to bring them to the next phase of the project.
