Uni Core Holdings Corp. (fka UCHC)

[IamtheWalrus]

it's confusing because traders like yourself don't bother with the other half of trading. Not just interpreting a few squiggly little lines - that's the easy part. It's understanding how the business works to some degree. Going out of business isn't a pre-requisite for a scam either. And UCHC hasn't given any signs that it is a scam or that it is going out of business - which is on the contrary from their recent financials. They aren't scams or crooks just because they deal with known sleazers. We all do, whether we know it or not, or just because you arbitrarily say they are. Many legitimate companies have reached their fate when they signed with Ironridge global. Ironridge global is like a pawn shop. They take a large piece, no more than 9.99%, of the company's stock and give the company liquid cash so they can do business. Most companies can't take on the debt, but do anyway, and eventually lose their CEO because of "other" bad business decisions that got them there in the first place. Or company goes bust - which happens, even known affiliated financial sleazers like Cooper, Kirkland etc, try to help others...sort of penance, yet make money at the same time as proof they still can. Companies have been able to pay them back, others haven't. They just reported and their balance sheet is clear. Upcoming financials will tell the longs, one that I am not, whether they should stick with it before the year's end or take the loss at tax time. I am only in a couple hundred bucks looking to DBL. It's possible, but I may have to wait for the MOMO again. This was a small investment, that I am willing to do without for a while, and wait for the next pop, and I will get it back eventually.

On the flip side, their payment was made with shares from the common OS and put on hold till the expiration date.

The guys at IRG can't:

(1) vote on any shares of issuer common stock owned or controlled by them, exercising any dissenter’s rights, executing or soliciting any proxies or seeking to advise or influence any person with respect to any voting securities of the issuer;
(2) engaging or participating in any actions or plans that relate to or would result in, among other things, (a) acquiring additional securities of the issuer, alone or together with any other person, which would result in them collectively beneficially owning or controlling, or being deemed to beneficially own or control, more than 9.99% of the total outstanding common stock or other voting securities of the issuer, (b) an extraordinary corporate transaction such as a merger, reorganization or liquidation, (c) a sale or transfer of a material amount of assets, (d) changes in the present board of directors or management of the issuer, (e) material changes in the capitalization or dividend policy of the issuer, (f) any other material change in the issuer’s business or corporate structure, (g) actions which may impede the acquisition of control of the issuer by any person or entity, (h) causing a class of securities of the issuer to be delisted, (i) causing a class of equity securities of the issuer to become eligible for termination of registration; or

(3) any actions similar to the foregoing.

Once that period is over, IRG can sell shares, short them, buy more, whatever, which, if the price has gone down substantially, since that time, could put this one under the bus, if they aren't doing well in business altogether. So it all depends on whether they can pay them back in time with revenues made from good business. They are basically giving IRG the power to dilute when the expiration date is up, which will cause any company to be delisted. But as I said, most companies were delisted from the NYSE, NASDAQ or AMEX, etc, after they did business with them. Uni Holdings is already an OTCBB, which can be very beneficial to them if their asset to debt ratio is good like UCHC (http://biz.yahoo.com/e/120514/uchc.ob10-q.html). Their revenues increased with each year, and these guys are legitimate company. Just go to the back warehouses of Cotsco or Walmart, and check out the palettes. They're APT Paper. Uni is the holding company. Every manufacturer has a holding company that takes the heat. UCHC is taking the heat and needs a line of credit. UCHC didn't just create more shares to pay them, they gave them shares that were already in the mix, reducing the share count for a period of time. I think they will be able to pay them back, but it may take a few pops, pullbacks and runs before I can get my DBL.

Lesson #1 never invest in a penny that you can't afford to lose.