Exxe Group Inc (AXXA)

[davied25]

Most institutional or accredited investors aren't going to put in a $500k bid on a thinly traded penny stock, for example. Try buying 50,000,000 shares at .01 here and see what you get. With a 300,000,000 float, this thing would hit .03 in minutes. Or see how long it takes you to put in one hundred .01 bids at 500k one at a time after each fill - would be weeks if not months and the price would surely rise just the same.

An offering like this basically allows legit whales to load with size without hassle. You might pay a bit of premium to the CURRENT market, but its way more efficient when you're not someone who sits around trading all day every day. Plus if you buy over 9.9% of the OS from market, you have to register with SEC and there's certain rules, etc. Reg A on the other hand is an exemption from securities registration. And I've seen Reg A's that double or triple the current OS, but this one only adds 22% max if they sell the whole offering.