One way the debt pumpers make millions and no one else is able to is they get a lame or shell OTC to take the bait and they tell a company like SGMD (unless the CEO is in on it with them) they tell the CEO that if they change the OTC from some boring company to some hot exciting intent company they will issue the CEO lots of shares they can sell in a year and could be worth millions.
After the pump and dump and over time the massive dilution, the new controllers of the OTC have the company so messed up the CEO can't sell on the bid and to do so the CEO would have to file the company with the transfer agent to be DWAC registered but they would not be approved as DWAC FREE. This would prevent the restricted from be made free trading. The debt pumpers know that the pump and dilute negates approval for DWAC thus making the CEOs shares worthless and restricted.
The worst part is the CEO who is pretty much the only one that is on the documents and at the company as an active member ends up having to deal with the shareholders, the SEC, any fines, compliance issues while the debt diluters take all the money off shore and no one knows who they are because they are not on any filings
If SGMD implodes who are investors going to call? Jimmy will be long gone, the address not valid and a cell phone that will be cancelled. Jimmy may move on to other things or even just retire or resurface but no one will be able to find him.
I am positive Jimmy authored the debt conversion and issued 100,000,000 tranches of shares for as low as $10,000 maybe $20,000. That comes to only $0002 per share. The debt diluters tell the brokers or market makers they can have the shares for $.0006 and they can resell then for $.002 (any price above $.0002 is pure profits for them and losses for investors)
That is why so few will be able to sell on the bid even at a loss. They brokers make more money selling shares they get direct from debt sellers. Why make $.0002 spread when they can make $.0014?
Jimmy will issue 10,000,000,000 over time in 100,000,000 tranches for $20,000 each so he makes $2,000,000. Jimmy likely did the debt conversion deal because he knows his shares will be worthless when the dilution stops.
Usually the offer is to just sell the company and take shares but the debt diluters need someone to file, sign documents and take the heat when the hammer falls. This is Jimmy’s position.
The debt dilutes initially start the process with the new Marijuana Intent and sell the pre-increased float 200,000,000 pumped to $.15 and make a fast $30,000,000
The pumpers and lower level brokers end up dumping the increased authorized over time even at $.002, 10 billion shares comes to $20,000,000
So Jimmy actually makes the least amount but he may have had no choice, fold SGMD due to no sales or failed business and agree to make SGMD a hot MARIJUANA stock knowing no one would invest in paper straws.
It's basically survival and if anyone who invests in OTC pumped stocks had a dying OTC company who needed to survive or let say your kid needed a $1,000,000 operation to save their life and the only way to get it is to agree to the hot MJ change and pump and dump to get that money, everyone reading this would do it to.
But is this the case of a medical family emergency or just pure greed. Either way the actions and outcome are the same to investors.
The question weather people would invest knowing it's a medical emergency can be answered simply by seeing one of those donation cans at the store check out counter that says HELP my kid needs a new kidney, Do you put in the $1.89 change or do you go to the bank and get $1000 and put it in the can?
So regardless of WHY jimmy did this for what ever the reason the way to get your $1000 is to simply post intent rather then a medical emergency because no one would invest even if it means saving a kids life if in fact that is the case which I am sure its not.
Their are 11,000 listed OTC stocks and only 200 each day account for over 95% of all shares traded. All 200 are from OTCs that are stop sign or even caveat and the dollar volume is about $300,000,000 each day.
That means that only a fraction of listed OTC companies make up for most of the shares traded each day and most of those companies have a share price under $.01 and attracts the sub penny players.
SGMD is not breaking the law, they committed no crime, they did not lie, cheat or steal your money, you read the risks and you gave them your money.
NO regulations can stop fraud as long as you give them your money knowing the risks, the SEC cannot stop people from tossing money into the fire.
:)
