Reverse splits followed by MASSIVE, instant stock dilution - ASCK history
The previous two reverse splits by ASCK over the last two years have been immediately followed by huge self payments of stock to ASCK insiders, causing instant, massive dilution of stock value.
In June of 2018, ASCK did a 1000 to 1 reverse stock split. Prior to the split there were about 3.5 billion shares. From the May 2018 10-Q:
"Indicate the number of shares outstanding of each of the issuer's classes of common stock. The number of shares outstanding as of May 21 st , 2018 of the Issuer's Common Stock is 3, 545,051,447 ."
From the Aug 2018 10-Q, the 1000 to 1 reverse split is reflected, shares down to 3.5 million
"Indicate the number of shares outstanding of each of the issuer's classes of common stock. The number of shares outstanding as of August 20, 2018 of the Issuer's Common Stock is 3,550,741."
Following the split, the company issued 50 million shares to John S and company, increasing the number of shares to over 50 million, and taking back over 90% of the company ownership that it had sold to the public in the form of shares of stock. From the Nov 2018 report:
"NOTE 7 - COMMON STOCK
On June 7, 2018, the Company effected a Reverse Split at 1,000 to 1. During the three months ended September 30, 2018, the Company issued, post-split 3,629,000 shares to note holders during conversion representing a total value of $ 21,310. As a result we recassified $354,149 from common stock to additional paid in capital.
In addition, the Company issued 50 million shares to management and associated parties for services rendered that was expensed in the Company’s Financial Statements, with a valuation of $2,540,000 valued on the date of the grant."
In May 2019, the quarterly report summarized the new, massively diluted share situation
"During the Period January 1, 2018 to December 31, 2018, the Company issued 56,456,751 shares based on post-split numbers Including, for services rendered, the following were issued on 8/17/2018:
35,000,000 shares to our Company CEO, John Sprovieri for Management Services.
5,500,000 shares to Kathleen Jett, wife of (deceased) Director, Clifford Jett for Director services
2,000,000 to Director (retired), William Beers. for Director Services.
2,500,000 to IR director, Lee Odom for IR services.
5,000,000 to Kimberly Grimm for Management Services."
They sold 3.5 billion shares of their company, then reverse split 1000 to 1, and then issued to themselves over 10 times the amount of shares existing after the reverse split (50 million issued compared to 3.5 million outstanding). So they sold shares in their company, and then just took ownership of the company back from those they sold it to. Seems illegal, I complained to the SEC, but they did nothing.
Then In Dec 2019 they announced another reverse split, 200 to 1. They would be reducing the outstanding share count down from about 2 billion to about 10 million. Seemed pretty obvious to me they were going to do the same thing, massive reverse split, then issue themselves 50 million shares again to take back the company from the people they had sold to, AGAIN. And again I complained to the SEC, before it happened, a blind man could see the pattern. The SEC did nothing, and again ASCK issued 50 million shares to themselves after the reverse split. From the Apr 2020 report:
"During the period January 1st, 2020 to April 7th, 2020, the Company issued a total of 62,433,402 shares from treasury. There were 12,433,402 shares issued to Noteholders through stock conversions and 50 million shares were issued to Management and Associates as compensation for services to the Company."
Now this 40 to 1 reverse split about to happen will reduced the share count down from about 150 million to about 3.75 million. Very close to the 3.55 million that were left after the 2018 reverse split, when they followed that up with the 50 million share self payment and taking away 93% of the company ownership from existing stock holders at the time.
In my opinion, it is clear as the nose on our faces they are doing the same thing again, a third time, and will be issuing 50 million shares to themselves again, after the reverse split, which will instantly dilute the value the all existing stock by over 90%.
