I will start off this post by saying I like what they are trying to do. I think there is real good money in it down the road. I will be here to cheer when they succeed but at the same time I will criticize them when I see, in my opinion, they are messing up. I like the Washington Redskins but when the coach messes up, I will be the one of the first to say "what the heck is he doing?". I also assume this board is the place for this.
They merged with Diversified in April/May. We were told the main reason was that diversified was profitable in their divisions and it would be a great cohesive merger (I definitely can see this). We also were told they planned to uplist at some point in the future. The company also told me and certain other people audited financials would be out relatively soon and that the company wouldn't sell 100,000s of shares (I guess there he didn't lie, they sold millions not hundreds of thousands). Later we were told audited financials would be delayed and that the company would rather spend the money elsewhere.
Since then the float has increased to 3,500,000-4,000,000 through a steady process of bidwacking the share price down (as far as I can tell). Now they would have needed some type of Tax Returns or Audited Financials to do the merger. No company will merge with another company without at least tax returns and most likely audited financials (since they are public). I have been through 2 mergers in my prior company and I went off tax returns since I intimately knew the companies involved and the value of the assets being transferred over. Also the site has not really been updated at all.
My point is this. They obviously sold shares. Why in the heck would a company sell shares lowering the price and not put out prior tax returns or slowly increased membership on the site while selling shares? This makes no sense to me. It is almost beyond dumb if they are on the up and up. They say we dont have $20,000 for audited financials but by them not putting them out they hurt the pps of the stock price well more then $20,000+ it would have cost them for the financials. Also people seeing a slowing increasing membership on the site would have boosted the share price some hence netting them more money. This is after all a pinkie stock and people are cautious as it is. Its easy to play monday morning quarterback but they are acting like they have no idea how the pinkie market works. It is almost like they planned for the share price to drop or they had nothing positive to offer the potential investors in regards to financial information.
I still assume they are honorable people and their backgrounds make me think nothing otherwise but wow they are then very naive. If they have nothing to hide and things are grand, disseminating information would only improve the capital they raise by selling stock. So far their silence has only hurt it and in that I am definitely criticizing them.
Sorry for the long post
All posts are only my opinion and are not buy or sell recommendations.
