The Reverse Merger could work like this:
I was in the shower…… wondering WHY CEO/founder Greg Evans will be buying shares as opposed to selling through dilution like the other penny CEOs?
First, LJB Ventures (Ligatt Security) is not like other penny companies. Other penny companies usually buy a shell to start raising money for a company that has little or no sales. They can’t get loans at banks or any other place and must DILUTE and sometimes go to Cornell and get into the death spiral of sub-penny, followed by dilution and reverse splits.
LJB Ventures (Ligatt Security) is different. They already have a company with 100 employees, 4 offices and I’m guessing a fair amount of revenue. However, Gregg can’t reward employees or raise capital for expansion because of the credit crunch. So he buys a clean shell and creates a reverse merger.
Now…..he supposedly has told some here he will be buying shares up to .10. Ok, let’s say he buys shares after symbol change PR. With the huge volume he could easily buy shares and with any other news keep buying up to .10. He then turns around and sells some of the bought shares over time and slowly as the price continues up past .10.
Think about it. Dilution is usually the death of all penny stocks. Yes, you raise money to survive but never have a pps that is good for anyone, including the founders and employees. This way he raises money and keeps some shares and keeps the pps going up, not down. It might be what he is thinking?
It would be brilliant if so and all would make money in this scenario because Greg has bought a shell with a small pps and small number of outstanding shares. He has enough revenue and news to pump the pps up as he buys and keeps the pps up later when selling by controlling the amount to sell versus the demand from news. He probably thinks the real value (what he can get it to in say 1 year) of the stock is .20-.40, which would give him plenty of wiggle room if he buys as much as possible up to .10.
