BesaoT35, here are your answers.
3a10 toxic convertible loans are what destroy many micro cap companies. You are saying that the CEOs and other officers are all in on it. Even the OTC is in on the scam and profits massively from it. This story deserves to be told.
A: The destruction of the company is PART of the plan when the scheme is launched. People have to stop finding WHY companies fail when debt or notes are in the picture. They are part of the scheme and the scheme is to destroy the company. When the dilution is over the company is finished. IT IS PART OF THE PLAN.
Also the OTC is not a regulatory authority, they are a for profit company that is public. IF you created a similar website like the OTC's and called it the TSS (top shelf stocks) you would be able to change small companies a fee to also be listed on your website. The OTC is just a free enterprise public company that only cares about their bottom line and stock price.
FINRA owns the tickers not the OTC. The OTC recently told non-paying STOP sign companies to pay $6000 or they will be no longer able to post on the OTC. It is the same as you have a FREE ad on a website. If you do not pay, you cannot be posted. That is what the OTC is. They don't care if tickers are legit or not. If you pay you can be listed with ZERO regulation because the OTC is just a free enterprise website.
Also: A book on this subject is almost finished and will be available soon to the public.
Why can’t a company simply sell shares that are beneath the authorized share limit and use that money to become a successful business? Is there a list of any or many stinky pinky success stories? Does it ever happen?
A: The plan to be a successfully company is NOT part of the schemes plan. The plan is to sell shares not make the company a success. Again you seem to think these CEOS are just hit with hard times or issues with capital or fail do to notes or debt financing as the reason they fail. They are set up to fail and is part of the scheme.
Also: The problem is NOT the tickers, it's the investors who mostly want to invest $100 at $.0001 believing those 1,000,000 shares will rise to $2 as pumped. They buy in at $.10 than buy cheaper to cost average. They plan on that to happen. WHY do they do this?
If you invested $100 for a $.10 stock and got 1000 shares and those shares skyrocketed to $2 per share, your return is only $2000 and hardly a windfall. The gamble that a $.10 will tank to $.0001 so the investors can add to the 1000 shares another 1,000,000 for the same $100 with the belief that even if they rise back to $.01 they make $10,000 but it never happens.
As long as billions are made selling diluted cost average shares, there will always be tickers ready to take your money. And these high-risk tickers that offer a huge return on $100 is more a lotto play then a real investment strategy.
Can toxic funding be replaced by company share selling or better quality lending? Should or could OTC stocks have a toxic financing rating attached to them as an investor caveat emptor? Thanks
A: These schemes have to use the debt or toxic funding because no real big money investors would touch these tickers. It is easier to get 10,000 people to invest $1000 because they know no one person or investment group would dump $10,000,000 into one of these tickers. WOULD YOU?
Also: all the info to see the toxic or debt funding is ALL right there in black and white on the OTC companies data. No sales, Lots of debt and a huge authorized. That's your signal to take caution.
