I have to disagree with you on that RS point... to many people jump to the conclusion that an increase in the AS automatically says RS is coming... For AFFU if you believe in what they are doing then this explanation as to why there most likely wont be an RS should satisfy people.
With all of the dilution we are about 1 billion away from maxing out the AS. What is important is how many shares does the company have out that can come due at a later date. The answer is 14,453,578,000 these shares are notes that have been issued and can be converted in 2027. Those numbers are listed in the Management Certification on Page 3 that was filed on April 29 The regulations for a company that sells shares, Convertible Debt, clearly states the the amount of shares that are to be converted, no matter if its 6 months or 2 years, those shares MUST be held in reserve with the Transfer Agent. Its a guarantee to the lender, the person or company that paid for those shares in advance is protected against the company not having them at the time of conversion. If they were not held in reserve then Affluence could use them for something else, like an acquisition and the lender would never get paid.
We know as of now that there are just over a billion shares left in the AS. Once the AS is maxed out the company can not acquire any one, they can not pay their management, which is always done with shares. They are for all intense purpose's locked out of doing business that would require major capital. We also know, again if you believe in the company, that they plan on adding at least one more acquisition once MTi is done.
If an increase to the AS comes it will actually be protection for the company as well as shareholders... how you may ask...if there are not enough shares in reserve to honor the convertible debt Affluence would be in default and at risk of having the company and its assets taken over by the lenders.
An RS at this time would do them no good, all it would do is trigger a reduction in the Outstanding and free trading shares, but do nothing to help them with future acquisitions and could possible trigger a default. They can not do that and honor the agreement with MTi of having to reach the NASDAQ with in two years. A RS as you say is a death spiral and it would create more dilution all over again and the PPS would simply shrink back to where they would not qualify for the up list in two years.
This to ME, an increase in the AS is protection... now there will be a lot of people who do not agree with me, and thats fine, this is just my take on it...so I am ready for people to call me a pumper and what ever else they want, but I am here for my one reason and that is to make what I hope is a ton of money. So I actually do expect them to do the increase.
AI
