BEWARE the umbrella or affiliates! Here's how it works.
Although SGMG has a LOI, and I can find a skyscraper in NY selling for $800 million and send them a letter saying I want to buy it for $2 billion and they say OK sold! I say OK give me a little time and well enter into a contract. NOW I have a letter of intent (LOI) and sell 100's of millions of shares for cheap and when I attract more suckers who see the PR that has ZERO do with Marijuana (I thought they made $50,000,000 in MJ) yeah sure! So this is just a LOI anyone can get as long as you send the letter even though it goes in the trash, its still a sent LOI signed by the public company CEO not the ones on the other end. $70,000,000 SGMD does not have and shares that are worthless, SO how are they going to acquire those assets? A worthless LOI! Got to hand it to the schemers who pull Jimmys strings, they are SMART and making MILLIONS from sucker investors.
I guess the ones selling the building would send a letter saying SURE you can buy it for $2 billion when they only asked $800 million so anyone would agree to that and send a letter saying DEAL!
CAMON RS!!!!!!!!!!!
Affiliate or umbrella or even a worthless LOI,
It allows scammers who don’t want to or can’t go public for what ever the reason. They latch onto a public vehicle and acquire free trading shares that promise to jump start the liquidity and price but when they pump and stock UP and sell off all the free shares they received (usually in a day or two or a few months), once sold they vanish and leave the company and CEO to deal with the diluted shares and eventually the huge drop in share price and then people ask the CEO what happened to the HOT news and plans.
In SGMDs case they are just using another LOI but this may be the last time before the RS or they just close up the ticker. But as long as people buy these shares they will keep adding more to the float.
Umbrella,
Its the same as a pump and dump but the pump is from non company affiliates who told the CEO if they issue then shares they will put the alleged company under the public vehicles umbrella. What that means is a scammer who can’t go public can just form some new LLC (private company) that is not real but a simple website to look like a giant company, start a PR pump and dump, send out the pumpers to chat rooms, sell off the free shares they got from the CEO with the promise it will make that public company a huge success.
UMBRELLA is just a way scammers can sell publicly traded shares and have clean hands and make as much money as they would being a public pump and dump only they are not the ones public yet they market that their plan is part of the public company.
Mushrooms Inc. (OTC: MSRM) Announces Plan for Acquisitions and Vertically Integrated Business Development by Partnering with diversified Mushroom Market Leaders
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