Yeah, that current report filing in September announced both the 25-1 R/S and the Authorized going from 100,000,000 to 300,000,000.
That would be a before-split level of 7.5 billion shares.
CYPW did the same thing, constantly increasing the authorized into the billions. That was driven by the convertible notes specifying that the authorized shares had to be some factor beyond the number of shares the notes would convert into. Seems to me it was about three times, and the notes converted at a price about 50% of current market.
As the stock price dropped, the A/S was forced to increase. As notes converted and were dumped on the market, stock price dropped, forcing more A/S, and so on.
I'm a little surprised Nelson has gotten himself back into this hole so quickly. At CYPW he had the two management clowns, Harry Schoell as CTO and his girlfriend Frankie Fruge as President. Schoell was then "ingenious inventor" whose only talent was inventing stories of how well his make-believe steam engines worked, and Fruge's talent was writing PRs about how International Corporations kept licensing their technology and how mass production of the engines was starting in six months. (The last story about the corporation with access to billions in investment that was going to fund their foray into major solar energy projects was tracked down to a guy working out of a business incubator office in an abandoned church in Salt Lake City.)
Schoell and Fruge were machines turning out PRs announcing Big Deals and mass production and sales of engines. They got some money from sophisticated investors, but most came from thousands of retail investors. It was years of this before they started running out of retail investors and had to turn to the toxic notes. Even then, there were still lots of people buying the dumped stock as the notes converted, maybe the same retail investors engaging in penny-cost-averaging.
Nelson and Bolin haven't done much publicity to attract the retail market. QPWR was listed as having 306 shareholders of record. They seem to have aimed just for sophisticated investors. The trouble is, those people are harder to swindle.
Today saw the price drop 19% on a $600 trade. Not much of a market for this company. While CYPW had thousands of people buying stock on the way down, QPWR/QSAM with their steam engines/compost/cancer cure strategies obviously doesn't.
So I'm a little surprised Nelson didn't learn you need a sexier story to suck in the bagholders like was done at CYPW. On the other hand, the guy obviously isn't the sharpest knife in the drawer...
