Mattie, that is why Suissac who wants to make sure Jimmy never does this again does not realize Jimmy will never do this again electivly not by force.
A debt investor who is not on any corporate filings is of no interest to the SEC or DOJ. What is legal is this:
A failed OTC paper company or any other failed public entity is contacted by the debt investors.
When the CEO agrees to the changes and the company restructures into a new HOT entity be it Marijuana, gold or lithium, they are not committing a crime buy changing the company structure. The same as if you owned a car repair shop and decided to make MJ bongs, all legal.
If you decided to change from auto repair to making bongs and do not know if it will work, you can say you are entering the $100 billion dollar Marijuana space with the INTENT to make $20,000,000 in sales if the product is taken to market but there are no guarantees it will sell.
You have your friend form a company and he send your company a bill for $2,000,000 consulting and you now have $2 million in debt. Now you issued to those who set all this up to pay down your debt for restricted shares ($20,000 for 100,000,000 shares) the debt investors file 3a10 and by LAW they are allowed to have those shares free trading.
The debt investors have their associates pump it up; create hot PR's that the CEO signs and the brokers start taking in investors money. As the news it hot and the interest is mainstream the debt investors know they don’t have much time before the intent PR's become questionable.
That initial faze is when the float and authorized is low but the share price is high with the intent to go to NASDAQ or they could be bought out is news that is so good you can't help but to invest.
At that point the debt investors who dump 4-5x the float with the data not showing on the share structure yet, no one knows how many shares actually sold. This is in a way the debt investors shoring the stock so they can accumulate money before paying off more debt. Also what I found out is, the debt investor’s plan is to make money and never spend one penny of their own. Not even $1.
It’s a game to them to make money and spend $0. Here is how it happens.
To make this happen with $0 they pay the initial debt for the 100,000,000 shares on the back end not upfront. The debt investors tell the market makers to just keep selling the shares at the initial high price even selling 4-5 times the float but no one knows and obviously the small retailer has no clue they are buying naked shorted shares.
Since the debt investors know they have access to unlimited shares from the company on the debt conversion, they will be able to cover any shorts sold by the brokers or market makers.
When SGMD had only 200,000,000 in the float that sold for $.18 more or less for $36,000,000 when in fact more like 800,000,000 were sold for $180,000,000. Some say NOT TRUE because that data would be available but since the shares are sold as longs, the sellers do not have to register them as shorts so the data never makes it to the short list data.
The reason is the shorts disguised as longs sold by the debt investors associates are assured they will get the shares so they do not get caught in a short fall of shares (short squeeze). This makes the short data at 0%
When the 800,000,000 are sold for $180,000,000 and those who sold them short (disguised as longs) made a killing selling them for $.18 per share and in order to back up the shortfall, they pay the debt investors maybe $.09 per share. Now the debt investors are sitting on 800,000,000 x .09 comes to $72,000,000 FREE MONEY that cost them nothing.
They then send SGMD $20,000 for 100,000,000 and instruct the CEO to increase the authorized to 10,000,000,000, more than enough to cover the shortfall that was sold well above the 200,000,000 float. That is why the float increases so fast as the debt shares are issued to cover the shortfall.
And during that time the process continues as more shares are sold with the assurance more will come but at this point the price starts to drop rapidly and the cost average buyers rush to buy more shares.
This cycle of Sell more then the float at higher prices then get shares to cover that also drops the share price (dilution). That is when one day you have 200 million float then soon after the float is 8 billion or more.
This is how you make money for FREE with ZERO costs and everyone makes money except the retail investors.
OH by the way here is how the paid pumpers get paid. Since a company is not allowed to self pump lies, they obviously can’t stop others from lying.
A paid pumper (and you know who they a by now) is issued an ATM card. The bank associated with the card is linked to a global bank. Pumpers post lies and manipulate the stock and are usually paid maybe $3 per pump post. Ever notice a pumper will post 5 in a row while communicating with another pumper how great the stock is? They are one and the same person talking to them selves and are paid for each post.
You will see 4 pumpers all at the same time often promoting the stock with the posts a few seconds apart, SAME PUMPER.
When they show their bosses they did a good job posting 1500 pumps all over social media they are paid from overseas the funds into their ATM card account. If they don’t work they get NO ATM cash deposited.
Once a pumper sees they can make $3000 a week they get hooked on the cash and that is far better then working at McDonalds for $400 a week.
So when you see a pumper with 50,000 posts on IHUB you can be assured they made $3 per post. NOW most will know this. You see ONE pumper post. GOOD STOCK GRAB, GOOD ticker, I’m all in etc. Those are beginner pumpers who just think they can post non-relevant posts and get paid? WRONG they are denied money just for posting words just to rack up $3 posts.
If you reply to a pumper and start a conversation with them, they get a bonus for getting interaction and those they chat with end up private messaging that allows the pumpers to lie in secrecy like they know things not public yet. That causes the investors to tell friends and family. That is a professional pumper.
In All this, everyone makes money but the debt investors by far make the most while the pumpers on ATM payroll make the least if you consider $100,000 a year a bad salary.
All this is at the expanse of the open market retail investors.
It’s all-legal and what is not legal is not enforceable because it is not traceable. You can’t charge a CEO or company with fraud if some pumper lies and you cant even trace the ATM money because its sent from offshore.
Everyone wins except for the investors.
