Found this about another company. Makes me wonder...
Is this what Meyers has done?
What many micro cap investors do not know, is that there are a ton of very shady investment firms out there that are looking to give away money to small companies. This may sound weird, but trust me, it happens all the time.
What usually occurs when a shady investment firm sees a company begin to trade with a lot of volume, is that the firm will go short the stock and try to pound it down. Now in order to close out their position, they will need to buy back the stock or they have the option to offer the company financing in exchange for stock. Ah haaaaaa! Now you see where I am going with this.
So they will call the company and offer them money because they believe their company is one of the best companies on the Pink Sheet market. Riiiggghhhhhtttt. What they really want to do, is to send over a term sheet right away, so they can secure their stock position and close out their trade. Most of the time they want free trading stock. Now isn’t that convenient.
You go short stock on a small public company and then offer them short term financing in return for stock. What a great idea!
Most small companies jump all over the opportunity, because hey, they need money to survive. What the companies don’t realize, is that the firm that is offering them money is already short their stock.
One must truly understand, that legitimate money almost never comes searching for anyone or any company. When a fairly new company is starting out, they will have to knock on many doors in order to find legitimate money. Small Hedge Funds are notorious for doing these shady “PIPE” fundings
