Cardiff Lexington Corp (CDIX)

[BarkOLounger]

well, when you want to cash out your shares, and no one trusts to hit the ask, 2 million shares in a 3 million float will drive it down a lot.

Would you trust them and slap the ask right now? I bet most bid sitters dumped as they watched it slowly crawl down from about .06 since the RS.

Another point, and I actually kind of hope someone from the company sees this.

It looks like their strategy is to insulate their acquisition by using preferred shares, and not subjecting them to the RS.

In their last 8K they even announced a program for investors to buy special preferred shares from them, so they aren't hit by the next RS. Here is the text from the 8K.

"Additionally, Cardiff has allocated a Preferred “G1” Class Series for potential investors – 10,000,000 shares authorized, par value $0.001 per share with the following rights
and privileges no - voting rights, converts to common stock at a ratio of 1 share preferred to 1.25 shares common. Series G1 stock cannot be diluted due to actions taken by the
Company, BOD and/or its shareholders."

So basically they are telling anyone that buying shares on the open market is a mistake, they will RS again, probably this year.

The issue is that when this is all done, no one in the market will trust them. Sooner or later someone has to be willing to buy their converted preferred shares in the common market.

It won't be me.