Query o genius, how would one get research coverage on a penny stock other than to pay for it, particularly a start up? It seems to me that the company is willing to compensate the research preparer in order to get information out on the company and perhaps to get shares out of the hands of traders and into the hands of investors, all of which would help those you degrade by calling "bag holders". The company cannot sell the stock and the officers and directors cannot sell it and neither can the MBW people so it seems the benefit would inure to the present shareholders and bring stability to an otherwise volatile stock. Seems like a sensible idea to me.