CMKM Diamonds Inc (fka CMKX)

[janice shell]

NO legitimate company should ever find itself in that situation. It's one thing to raise an initial lump sum through an IPO or a PP, but to depend on constant sales to meet payroll is a recipe for disaster.

And the result, with or without shorting with a borrow or shorting naked, is dilution, which depresses stock price. Which in turn results in even greater dilution. It may keep the company on life support for a time, but it's pretty hard lines on the shareholders.

The primary direct effect on a Company occurs when the Company is dependent on the sale of additional shares to fund day to day operations.