Howaboutnow: First of all NO ONE is funding SGMD and no one with money that is a serious investor would touch SGMD. If they did have a source of funding they would not need to target retailers and dump billions in the float.
That answer to your post is NO! 3a10 says it has to be registered but unlike the Sarbanes Oxley act diversions and the debt filings being done with Prohibited Service providers means the referenced data does not end up on the financial statements of any given OTC pump and dump ticker.
This is planned and those behind the schemes know full well any registration would cause red flags. For some reason you and others actually believe this market is legitimate and MUST adhere to rules and regulations. That is about as naive as walking into a high crime area with a bag that says “NY BANK $10,000” and flashing a gold Rolex and saying to your self that crime is illegal so your safe.
When $50,000,000 or more is on the line with the plan to take retailers money on the scheme, rules and laws are no longer a part of the equation. The fact that pump and dumps don’t have much time to debt dilute because of the time it takes for any enforcement action to take place, they debt dilute and shut down the scheme before any actions are taken.
What you are failing to understand is that you for some reason most think this market is so legit and honest that forms and rules have to be followed to the law, which is proven to not be true at all.
SGMD had 200,000,000 in the float, now they have something like 8 billion in the float. That all happened so fast there was no time to wait for 144 or even registration of convertible notes.
What is also unlikely to have happened is the company would have had sell convertible notes that far exceeded the authorized at the time those notes were issued. That is 100% proof this is not convertible notes. And also is not someone funding the company. Who would fund this at a high share price if they see there are not enough shares to back the notes share count?
Anyone with $1,000,000 for shares at $.01 and paying SGMD that note when the shares are $.001 needs seek medical attention.
The only option why this is happening is non-registered (prohibited service provided) 3a10 debt converted to free-traded diluted stocks. As I have said many times that no one is giving money to SGMD on some convertible notes because they know the stock is going to spiral down.
There is one other possibility but that fact that SGMD is only a share selling entity the statements would not matter and also in a way is similar to debt conversions. When a scheme investor wants to dump and dilute, they will in most cases tell the target company they will invest $1,000,000 for a fixed $.01 (discount from the current price of let say $.03) per share on a convertible note that equates to 100,000,000 shares. A 66% discount.
But there is always fancy worded clauses that also says that at any time the stock drops below $.01 (the agreed note price), the company has to issue more shares to compensate for the fixed investments loss due to the shares dropping below the notes $.01 agreed price.
What I mean is this: You tell SGMD you will guarantee $.01 per share and have a warrant to purchase 100,000,000 shares at a cost of $1,000,000 but with the decline in price the note holder legally has the right to get more shares for the same fixed $1,000,000 that the note is agreed on. YES even if the note holder did not even exercise the note they are still entitled to more shares on the note.
The schemers force the market makers to kill the price initially and every time the price drops, more shares are owed to note holders to regulate the agreed price of $1,000,000. The bad part is that when the stock tanks to $.0007 the note holders are protected so they do not lose money at the fixed $.01 cent.
And at that point there is no reason to issue SGMD the $1,000,000 for 100,000,000 shares at a note price of $.01. So that price decline stipulation means that when SGMD tanks to $.0007 the notes $1,000,000 is now calculated and LEGALLY and is owed to the note holders $1,000,000 divided into shares at the same 66% discount.
That means that at $.0007, 66% discount is $.0002 per share. If you now divided the notes $1,000,000 into shares priced at $.0002, the note holder is legally owed 5 billion shares not just 100,000,000. In order to get the shares they have to pay SGMD the $1,000,000 in order to get the 5 billion shares. But since SGMD did not post that revenue yet billons of shares are being dumped proves that no convertible toxic notes are in this play. That leaves only one option.
DEBT CONVERSION that bypasses Sarbanes Oxley through prohibited providers.
One other form of manipulation is the note holders use the notes as collateral to show market makers they have the shares available but in order to issue them they need to kill the price. And by killing the price more shares will be available for less but at the same fixed $1,000,000. Since no money has to be issued to SGMD on the notes while the note shares are being sold, any money paid to SGMD is already accumulated from retailers so the note holders do not have to use their own money.
The note holders know they owe SGMD $1,000,000, that’s a fact. The note holders who know at $.0007 they only have to pay to SGMD $.0002 (66% discount) the scheme note holders have their people sell the 5 billion or more but ONLY if they regulate the price down. If the MMs don’t do what the note holders say, the note holders will NOT cash in the notes leaving the market makers on the hook for shorted shares. But since so much money is being made, they are all comfortable with the situation.
-You promise to give SGMD $1,000,000 for 100,000,000 shares.
-You have the MM’s dump 5 billion knowing the price will drop
-Your note target is to pay SGMD the $1,000,000 when the stock his $.0001
-You create the dilution based on the target $.0001 share price where SGMD would owe you 10,000,000,000 shares for $1,000,000
-The scheme sells 200,000,000 for $.18 ($36,000,000) then another 200m shares at $.02 ($4,000,000) then 200,000,000 more at $.01 ($1,000,000) then another 6 billion on average of $.001 ($6,000,000) All on the guarantee that note is legally binding.
So you take in $47,000,000 and only have to issue to SGMD $1,000,000 and you still clear $46,000,000 before even paying SGMD the $1,000,000 (free money) and SGMD legally had to issues the shares for less that end up in the float.
And also, the note holders who LOVE MONEY and hate paying out money will likely never even pay SGMD the $1,000,000 knowing the company will fold or reverse merge to a new ticker making the shares in SGMD void and also the notes that generated $47,000,000 will not have to be completed so SGMD is also out $1,000,000.
SGMD is not a victim but a partner and since the ONLY way SGMD's CEO would make any money is doing the debt conversion rule. Why would Jimmy do the toxic notes knowing the note holders would never pay or complete the note transaction? And Jimmy AINT working for FREE!
All this is the reality of the markets but again I see no cash influx to SGMD from note holders. If they did show a few million in revenue it would have been from note holders paying SGMD for billions of shares cheap.
I suppose Jimmy could have taken the money as salary or diverted the capital to 3rd party private companies to bypass capital gains and not even pay taxes on a large salary.
One thing that is clear on all this. The company makes and sells nothing but shares be it debt conversions or toxic diluted notes (again this all points to debt conversions) But the situation is SGMD shares are so diluted they will NEVER recover. As long as there are people buying the shares, shares will be available at any price that continues to drop.
Now the delusional investors say $.0009 up from $.0008 were in the GREEN. Then at $.00071 up from $.0007 is green, and soon $.0006 up from $.0005 will also be green. With so much green and no one making money.
You have ask your self is the green real or Astroturf.
