Howaboutnow, 3a10 allows any public company to issues an unlimited amount of shares if debt is paid. It applies to all OTC tickers.
If there were no 3a10 allowed, SGMD would not have been able to issue 10,000,000,000 shares as debt is paid creating the dilution and SGMD would just fold.
If 3a10 were eliminated, SGMD would not exist so they need 3a10 to issue shares for debt in order to generate revenue because all they do is sell shares.
Only valid companies would survive on the OTC if 3a10 is eliminated, companies that actually make sales and sell things to generate revenue would survive on the OTC and their stocks would rise significantly.
Also if the OTC had 5000 tickers just fold, they would lose about $10,000 per ticker who pays the OTC to allow the scheme to thrive even under 15c211 rules. 5000 x $10,000 lost due to no 3a10 is a net loss of revenue for the OTC of about $50,000,000 annually and the schemes make Billions. All from retail investors trying to make a fast buck.
Remember in all this, someone has to lose so others can win and the masses spending $500, $1,000, $5,000 on these schemes is the cash cow for those who win. Anyone can say they lost $500 and it won’t put them in the poor house but when 20,000 spend $500 on one ticker, the debt investor is getting quotes on a $20,000,000 yacht.
Imagine the $200 billion annually lost to 3a10 stocks put into valid companies that do not (cannot) dilute and actually expand and succeed! The OTC would be a better risk then NASDAQ and NYSE combined.
If 3a10 was gone back when SGMD had 200,000,000 in the float at $.18 and could not dilute or issue debt shares, and IF they did use the money they raised before the debt dilution to make the plan work, SGMD shares would be in my valid opinion $25.00 per share. They know they had no products or sales and 3a10 is the easy to way make fast cash with out working for it.
There are two options for OTC tickers. Make the company work and keep the shares strong or don’t make the company work and kill the company. Either way they would end up with millions but 3a10 is the path of least resistance.
And since most schemes intent PR never even comes close to being implemented you can see how that 3a10 is the culprit to all this anger and frustration.
NO ONE should be buying shares in a ticker that increases the authorized to 10’s of billions and only has debt on the financials. That’s the salt and pepper on the T-bone steak that investors never get to eat. They are only fed the bone.
That is the ONE factor in all this with our without 3a10, NO one wants to work to make the company a success and the stock rise UP. These 3a10 deals know that the retail investors want the same thing. Fast profits on a small investment.
In a way the investors who want the same as the schemes have to know that if they both want the same fast cash on little investment, one has to ask If both sides want the same who is the one spending money and who is receiving it.
Imagine if every OTC listed ticker was valid and profitable and making money? The shares would make everyone mega bucks. And because NO SANE legitimate fund would ever invest in a scheme like SGMD due to he 3a10, if 3a10 was gone, small start ups and OTC’s that remained listed would have Warren Buffet, Franklin Templeton and all the major investors buying inside shares.
ONE small change to the rules and 5000 OTC’s would vanish leaving all the valid worth investing tickers active. One problem also is, the same OTC’s investors who want the same fast big windfall on a small investment would not be able to buy 5,000,000 shares for $.0001 for $500. But isn’t investing $1000 to make $100,000 a good thing when it would happen vs. the $100 to $1,000,000 never happening?
Investors need to CHANGE their thinking and stop being JUST AS greedy as the 3a10 tickers they invest in.
Also to note: 3a10 does not need SEC approval so it’s CLEAR sailing for the diluting debt dump.
You can change the rule!
But you have to have Nancy Pelosi and her cronies change the rule. Good luck with that.
