Sorry, let me rephrase. They MASSIVELY robbed shareholders blind the past few months in preparation for breaching their own contracts of unlimited movies for annual subs. They stole almost $50 million worth (per my calculations which I've posted in various forums) in preparation. To their surprise, some people did not cancel because they only had a few months left and I suspect the bulk of the cancelling will come after their annual plans expire in a few months. This allowed HMNY to have a little cash in the bank. However, the dilution from the 636 million shares last they reported on August 14th has been diluted by 719 million shares since, to 1.36 billion shares as of September 14th.
The COMBINED money they stole from shareholders since the reverse split, up until now is the $65 million Ted Farnsworth is lying about, again.
No doubt, a significant amount has already been used up to pay for the films he's "producing" as well as other money-wasting schemes. He's like a kid who's never seen money before. Squander it all.
Part of the reason they need to continuously dilute once the stock price goes too low is to ensure they meet minimum Nasdaq listing requirements, which includes a MINIMUM number of shares, as well as price etc.
They know .01 x 500 (reverse split) = $5. They know this will sell off fast as they dilute and as people panic sell.
So their options?
1. Pump the stock up, which someone with $5 million can do easily. 0.05 x 500 = $25.
2. Dilute like crazy (i.e. 1.36+ billion shares or more) and increase the R/S from 1 for 500 to 1 for 1,000. 1.36 billion / 1,000 = 1.36 million shares, which is within Nasdaq listing requirements.
My point?
I wouldn't be surprised if these crooks pump up the stock price the day right before the reverse split, or they release a SEC filing changing the terms of the R/S from 1 for 500 to 1 for 1,000 or 1 for 1,500 something, if they plan on diluting the eyeballs out of share holders from now until the meeting to say 2 billion shares.
2 billion shares / 1,500 = 1.33 million shares, again, within Nasdaq listing requirements. If they pump the price up right before the R/S, as well as dilute the eyeballs out of shareholders, 5 cents x 1,500 = $75, which might give them the 10 days they need to remain listed. They'd have robbed enough from bagholders that they wouldn't need to immediately dilute after the next R/S, unlike the last time when they were dead out of money (again, which I calculated and predicted a month before). These crooks are not that dumb (sort of).
They can't sell below PAR value of 1 penny, so they have to pump it up in order to dump more if they want the R/S number to be huge to guarantee a high share price. Obviously they know delisting is bad since they can't milk shareholders as easily in the OTC.
