Update from Chad...
And I'm only posting this because in his email he says 'you can start letting folks know' and I think that the whole email needs to be posted so certain points aren't taken out of context. There is a good chance several of you have also received the same email anyways.
I found out today the CEO needed some unexpected tooling done and went ahead and finished off the majority left on the 504 which was about $70K. I’m checking with the T/A Monday to see how much damage it did. According to the figures the CEO gave me my math is working out to 1.1B. He also was a little ticked at the lender, I guess since this was the last little bit he could do on this Reg D 504 they just dumped em into the market the minute they got the shares.
I have tried to keep up with the share structure but I’m just the IR guy. The CEO doesn’t call me up to let me know these things until after the fact which makes my job harder, don’t shoot the messenger. Anyways, you can start letting folks know that it looks like 70M shares got dumped into the market the last few days. My estimates put the O/S around 1.1B now. That should put the 504 with less than about $20K left to use. On a brighter note, he has pretty much maxed out the 504 now. The only other way he could raise money now is through a Reg A which takes months to clear. So you’re looking at less than $20K he could raise now and at the very minimum 90-120 days before a Reg A could even be considered.
I’m caught in between the company and shareholders on this, they need money to push the business plan forward and he is doing what he feels is important for the success of the business despite the market conditions. In a perfect world the company could raise money at a higher price but the market doesn’t want to value the company at that price… so here we are. For those that blame the company for the current price.. that’s just BS.. the stock has traded Millions of dollars the last few months. Hell it was doing on average $350K a day for over a week. All the finance shares were sold at a 30% discount to the market at the time they were purchased by the lender.. it’s pretty safe to say with the amount of dollar volume that has been traded in this stock that we sit where we are now because nobody ( Note holders, Lenders, investors ) bothered to hold the stock. You can’t raise money efficiently in the market when everyone else is selling too. Nobody invests anymore and the mentality of the OTC is to flip or scalp. Not even the institutional lenders care anymore.. they dump as soon as they get shares to get their 30% and move on.
When people buy at .0015 and sell at .0018 what they are saying is that the company isn’t worth the investment. The only way any company can achieve a good share price is if it has a strong stable long term shareholder base. If a company has a strong shareholder base, dilution is absorbed more easily through supply and demand. Everyone wants to blame the company.. but it is the lenders who sell the minute they get the stock, the day traders who don’t carry the price higher and the sharks who manipulate the market. It is easier to point the finger at the company then to acknowledge the bigger problem facing all companies that trade on the OTC markets. God forbid someone discuss that topic in any detail.
Warm regards,
Chad C. Sykes
