XCPCNL Business Services Corp (XCPL)

[charhorse]

The subject of share based promotion and financing aquisition is a very interesting one and something everyone interested in stocks of this kind should learn. The whole process of obtaining convertable financing, stock promotion, and share structure is linked from the beginning. The press releases that prompt an increase in share volume are usually followed by a registration filing or an increase in outstanding shares. This fact is not included in the press but is quietly filed to cover the legal requirements. The convertable debt holders have to have a place to sell their shares. and they will always obtain them at a discount compared to the retail market. You can find companies like Laurus or Dutchess that will lend you money for your company if you are willing to give them control from the start. The increasing debt load can quickly bury a company in shares as the requirments in shares to pay the notes increases and the value per share decreases. Increations in outstanding shares or reverse splits to restart the share clock are the natural progression of this process. With money even tighter now I imagine the control levels demanded at the onset are even tighter. But if you're a CEO and you have a dream why not. If it works out you're a bigshot. If not the shareholders are left out in the cold. The promotional venues are by no means unbiased however the average newbie won't read the fine print, or filings. These message boards are also a wonderful tool for the promoters. They seem to be full of manipulators posting deceptive or misleading information. The third party promotion used in promoting Vital Products is a new twist for me but I don't think there is really anything new about it. The end result will always be the same, New bagholders. Pumpers sold and gone. Press releases and share increases. Kinda has a ring to it don't it