Singing Machine Company Inc (MICS)

[NobleRoman]

Stringray Ownership Percentage Intrigues Me

So I changed the front page to reflect a 24.4 percent ownership interest of Stingray now. That's amazing. After the dilution, their percentage went up a net 4 percent. I don't understand. I got it from the latest filing here. An amended statement of beneficial ownership. Amended by Stringray themselves.

https://ih.advfn.com/stock-market/USOTC/singing-machine-qx-SMDM/stock-news/88219542/amended-statement-of-beneficial-ownership-sc-13d-a

“As of May 25, 2022, Stingray beneficially owned approximately 24.4% of the Issuer’s outstanding shares of Common Stock. The foregoing percentage is based on 2,005,523 shares of Common Stock outstanding immediately after the Public Offering, as reported in the Issuer’s Form S-1/A filed with the Securities and Exchange Commission on May 5, 2022.

So that means they own 489,347 shares. Their amendment comes out on the 27th of May. On May 25th, our prospectus came out and it gives them an 18.8% ownership. So, it's like they stepped up real quickly to correct the record?

https://ih.advfn.com/stock-market/USOTC/singing-machine-qx-SMDM/stock-news/88214588/prospectus-filed-pursuant-to-rule-424b4-424b4

Stingray Group Inc. (3) 222,223 18.2 %

And the original statement of benificial ownership filed on the 25th says this:

https://ih.advfn.com/stock-market/USOTC/singing-machine-qx-SMDM/stock-news/88211516/statement-of-changes-in-beneficial-ownership-4

After giving effect to the transactions reported on this Form 4, Stingray directly beneficially owns 322,223 Common Shares and 222,223 warrants to purchase Common Shares ("Warrants").

That would be 16% ownership. Before the release of these, I changed my page to "over 10%" because I came up with 15.4.% by rounding off an approximate 20% stake on the approximate 1.2 million original shares which is 240,000 shares. Then adding 100,000 shares for what they purchased in the secondary for 340,000 and dividing that by 2.2M shares (the figure I had come up with which was spot on). That's bascially the same 16% they came up with. They would be more accurate. So basically their percentage ownership went down on the net. Or so it appeared.

HOWEVER, this amended filing above -- Stingray files it to correct the record and say they own 24 percent. They correct the record and say their ownership percentage went up, not down. They have more than 140,000 shares than any record reflected. How could that happen? What am I not understanding? Were they part of the massive volume buying when the reverse split went into effect, and there was the liquidity to do that below the secondary offering??? Is that possible? Is that how the discrepancy happened?