Remember back around the 2,000 year time period with Pink Sheet Stocks? Toxic financing (PIPE) loans were rarely heard of. The procedure was very cut and dry. The CEO of the company would build interest in his/her company by releasing frequent PR's that gained a lot of attention. Momentum traders would acquire tons of shares on the cheap then work with their buds to hype up the company. The MM's cooperated and it was not uncommon at all to watch a $.0002 stock move to $.03-.05 a share on little but hype and momentum.
But that's beside the point. When everyone had to own the stock as it was moving up higher and higher, the CEO would start selling some shares to pay bills with. He/she would do it wisely so as not to kill the upward momentum. A CEO with half a brain could minimize dilution because the share price kept going higher and higher. Up to $.10. Up to $.20 and higher ... all on hype and momentum drive.
What the HELL happened then to this way of so many making a killing in these Pink Sheet stocks? Toxic PIPE financing of loans.
If CEO's are SMART, they'll go back to that old way of doing bidness. Currently, appears they have nothing to lose. But they need to assure investors they will NOT take out toxic PIPE loans.
There will never be a "World War Three" so stop worrying about it. It would be politically inexpedient to use those exact three words.
