If they merge this stock, and I think any long that has done their research believes they will merge this with one of their other companies, they need to have shares to complete the merger.
This is just one possibility for the use of the extra shares but right now it's looking like the most probable reason.
Another very possible reason is they just needed to have more shares because they were virtually fully capitalized. They are in the midst of uplisting and having enough shares authorized to cover any debt they have is a requirement.
Just because they have shares authorized does not mean they are going to flood the market with them. First off, I don't think ANYONE would be buying. Just about everyone that follows this stock is watching very closely for the first sign of additional dilution. Of course the company knows this.
Also, if they dilute the shares more than they already have they are ruining their own shares more than they are hurting ours. Management has a long way to go to get back to their cost average. Diluting more shares is not the way to get there.
I think everyone has a sharp eye out on the money flow indicator. If that turns around and goes negative the stock will die IMO. It will go no bid and may never recover from that point. Would that do management any good?? Of course it wouldn't.
So people can bash this all they want. And they can say that this is just another typical pinky. But in the end the fact remains that if management EVER plans on seeing a return on their money they will do everything in their power to get a higher pps. Diluting will not do that.
"Sort of" is such a harmless thing to say. "Sort of". It's just a filler. "Sort of" - It doesn't really mean anything. But after certain things, "sort of" means everything. Like after "I love you" or "You're going to live" or "It's a boy".
AI
