I don't think many here grasp the concept of penny stocks vs other businesses. Penny stocks are NOT Like shark tank businesses, and no they can not just raise money by appealing to Shark Tank type investors or going to a bank typically. Even if they have large orders. Why? Because no shark tank investors would touch any penny stock. And neither would most banks. Why do you think 90% of penny stocks
resort to toxic financing?? BARZ did so. The reason being is that penny stocks, because they are public, and by nature are not sufficiently capitalized are highly diluted, and have extremely limited resources. Their ownership is massively diluted. Shark tank type investors would not invest in a penny stock, typically. They want a direct ownership of the earnings and profits and you are not going to get 25% 50% ownership, and control of the company and many other things that direct investors look for with companies that are already public and have already diluted their ownership. Plus they don't have earnings typically. All of this, among many other things is not what a venture capital type investor wants. They don't want mature businesses that have already failed, which is essentially what 90% of all OTC stocks are. If one is experienced investing in OTC securities, you know this theme keeps emerging. The lack of cash is always a problem when opportunity knocks. I think many here severely underestimate the challenges that BARZ has had fund raising. And yes yes, for the 10th time even with orders. It's what holds 95% of all OTC companies back. Customers won't continue with large orders if they don't think the penny stock has sufficient capital to fulfill the orders or stay in business. customers won't move to the next level of the relationship if the penny stock doesn't have typically around $200,000 to $5,000,000 depending on the company on the balance sheet. Or if cash drops below a certain amount. They need to have confidence the company can deliver and is sufficiently capitalized. They themselves have financial controls and fiduciary responsibilities. The reasons for this are a whole other topic. BARZ doesn't have that capital yet, and it has been the largest impedance to moving forward.
This is just one major issue penny stocks have vs. other normal businesses. Penny stocks are the bottom of the barrel. It's why myself and other OTC investors I know refer to the OTC as "thy sewer." A little joke between us. There are many other pitfalls that OTC stocks fall into. Typically, failing business turn to going public on the OTC in order to raise money to stay afloat, effectively "selling" the majority of their business by going public. What they fail to realize is they have a whole new set of problems that typically make their situation worse. They need even more capital to stay on the OTC so they can stay alive, pay employees, and try to raise even more money for auditors and SEC filings. Essentially most of them make their financial situation worse by going public. It's takes a very special management team and a strong strong shareholder base to overcome obstacles like these with strong backgrounds.
Anyway, my job is not to educate on this forum, I have better uses for my time. Yet I keep coming back! I should learn my lesson.
Love BARZ or hate BARZ I could care less.
