Music Licensing Inc (SONG)

[trader59]

Just read the twitter for the ticker for the first time ever. Looks like the owners (primarily the CEO) of PMR will be assigning themselves 3.5B shares to merge it in. I underestimated, though it was at a higher PPS (less stock). The CEO also says he isn't going to sell stock, he's going to get a loan against his stock holding in the company. Here's a thought... the company doesn't own the CEO's stock, the CEO does. Any loan using the CEO's stock as collateral would be to the CEO (as the owner of the stock), not the company. I guess he could take out a loan and then loan it to the company under different terms... But he seems to think the stock he'd hold would be more valuable as collateral than the company (or its assets) for the loan. No idea what he's thinking.
But then, I have no idea, if PMR believes its accounts receivable are real and truly collectible, why they want to go public in the first place (the owners would be sitting on a goldmine they own exclusively if it is real and collectable), and why they're looking to take out loans or sell stock to raise a paltry $5M. None of that adds up.