Hop-On Inc (HPNN)

[sidehill lie]

To compare what HPON is doing to factoring is very disingenuous.

In factoring, no one is hurt. The factor assumes some risk, and buys debt at a discount to compensate him for the risk. The company is giving up part of its receivables in exchange for immediate liquidity. The debtor just pays the factor instead of the company. Everybody is happy.

What HPON is doing is very different. By selling mass quantities of stock below market value, they are enabling the "factor" to flood the market and still profit, while the existing shareholders see their holdings decline in value. The corporate officers are happy, the "factor" is happy, but the stockholders are poorer, and not very happy.