Optec International Inc (OPTI)

[Deep6]

Dilution is in the top 5 concepts ignored by pink sheet shareholders!
Congrats again to the OPTI minions!

Agree 100% .. Great Post!!

A share dilution scam happens when a company ... repeatedly issues a massive amount of shares into the market (using follow-on offerings) for no particular reason, considerably devaluing share prices until they become almost worthless, causing huge losses to shareholders.

Then, after share prices are at or near the minimum price a stock can trade and the share float has increased to an unsustainable level, those fraudulent companies tend to reverse split and continue repeating the same scheme.

For this to work, those who control the dilution must also control their salaries because the only way for them to be paid off when it's the corporation itself selling is to gain access to the proceeds.

When a corporation sells newly issued equity, the corporation itself owns the money. To at least have the appearance of propriety, the scammers must be paid those proceeds. Both actions imply that the board is captured by the scammers.

There are many corporations that seem to do this even with persistently large market capitalizations.

The key difference between this and pump-and-dump is that its a fraudulent group of investors selling in this case instead of the corporation itself.

https://money.stackexchange.com/questions/28473/how-do-share-dilution-scams-make-money