Just got home from work. Did anyone see this. This is an e-mail I got today.
Delivery Technology Solutions, Inc. (DTSL)
Earlier we warned our followers that this company intends to dilute to kingdom come. Trading currently in the 0001 and 0002 range we now believe that this company will recapitalize and dilute all the 0001s and all the market makers off the bid before it commences a reverse split of some anticipated 10,000 or 100,000 to 1. So what's the delay? Why haven't they done so already? DTSL is awaiting another round of toxic financing and the pledge of preferred shares has put a fly in the ointment. How bad was the dilution? Let's just say that DTSL hired an in-house accountant to keep track of all the stock , dilution and SEC guidelines. Everything under the sun at DTSL is pledged as security. Preferred shares common shares everything, Is there a light at the end of the tunnel? Believe it or not Yes! In their stir crazy lust of dilution they pledged a chunk of their preferred shares. These shares are needed to complete the reverse split. We advisedthe transfer agent who told us a court order will be needed for him to act. A letter is being sent to DTSL solicitors to place them on notice. So how is this good for shareholders? If successful DTSL will not be able to complete its reverse split however they may still be able to recapitalize and dilute some more. Now if you read the DTSL Adequate Disclosure documents no mention of the pledge is made. Obviously a minor oversight. DTSL may (if the court order stands simply throw in the towel and file chapter 11 bankruptcy wiping out all shareholders. Our suggestion? SELL AND find a better investment. Maybe something with an orderly dilution or something that keeps the shareholders interest in mind. Something like ZMGD or TITL or GLGT is poised to take off soon. Make your own decision as DTSL is NOT a MMMG M&A or an IR client. We could not stomach the dilution and fairy tales and dropped them after 5 warnings to STOP the dilution insanity. An accredited investor that works closely with MMG on other deals already holds a position with this company, and made an emergency loan on the preferred shares for the alleged "UK expansion plans". Trade with your head not over it!
