Ronn Motor Group Inc (RONN)

[BefallenKnight]

Convertible Debt holders do NOT sell at a loss. The way this game works is that the CD folks are issued heavily discounted shares, often 50% or more, in exchange for cash. Hypothetically, CD holder Steve gives RONN $50k in cash and Steve gets 50mm shares of RONN at a cost basis of .001 (50% discount from today’s share price).

Now is where the fun begins.

Part of Steve’s deal in loaning RONN the cash is that not only does Steve get the shares but he is often paid interest for the loan. Of course RONN has exactly zero revenue so the interest payments are sourced by robbing Peter and Paul to pay the interest owed to Steve.

So beyond some nice interest payments to Steve, RONN will put out PRs that are intended to pump the stock for Steve to dump. When a PR is issued, ideally sending RONN shares higher, Steve will begin to offload shares. Having received shares at .001 if RONN goes to .0028 that is a nearly 200% profit for Steve.

What is happening now is RONN’s PRs are falling flat and barely moving the share price. Therefore Steve (the CD holders) are getting impatient and want to be sure they protect their profits.

Bottom line is that Steve and the proverbial Convertible Debt folks know that RONN will never fulfill the nonsense claimed in PRs but they know there is a good likelihood they can capitalize offering financial services to RONN, the same financial services that banks or legit venture capital wouldn’t dare provide because RONN is a scam.