MY EXPLANATION OF RECENT EVENTS
Based on my research, here is what I have amounted to. I own a significant sum of KMAG shares that I have accumulated over the past 4 months, up until the Q1 financial report was released, and am currently very, very deep in the red. I am feeling the pain just as I am sure many of you are. Please read my information and share what you think of it.
On May 3, effective immediately subsequent to the close of reportable period Q1, KMAG exchanged 25,000,000 Series A Preferred Stock to Jeff Reid as a means of payment of an undeclared debt of $328,015.
According to the Exhibit A in the Q1 financial report, Series A Preferred Stock are immediately exchangeable for common stock at a 25-for-1 rate. Also according to Exhibit A, in section 6.D, the company is required to maintain and adjust its authorized shares to accommodate a potential conversion of all outstanding Series A stock.
The outstanding shares as of April 30 is 609,420,100. According to section 6.D of the report, KMAG was required to increase its authorized shares to approximately 1,234,420,100 on May 3 -in order to accommodate and reserve Jeff Reid's potential conversion- which does not necessarily have to be reported until Q2 financials are released.
The proper conversion price for 625,000,000 shares into Jeff Reid's $328,015 would be approximately $0.0005. Unfortunately, should Jeff decide to convert his Series A shares and liquidate them immediately, without a promo, at an average sale price between $0.002 and .003 he would likely walk away with millions of dollars in profits and drive the pps down to $0.0001---
The following is my HONEST OPINION of what has taken place here.
Jeff Reid received his 25,000,000 Series A stock and chose to convert them into 625,000,000 common stock immediately. Since then, he has likely been supplementing the downtrend and raking in enormous profits by selling some of his creatively fabricated position. In my opinion, he intends on using the millions in profits he is making now to repurchase even more shares once the pps bottom out, to be followed by a new promo campaign to dump more of his position at the crest to create unimaginable wealth.
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In a nutshell, by waiting until immediately after the end of Q1 and at the near-crest of a promotional pump, Jeff Reid successfully fooled all of us. He is now free and clear to strategically dump or pump and dump his more than 625,000,000 shares he fabricated out of thin air until August when he will either be required to disclose or go dark on KMAG's reporting again and live happily ever after.
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There are two means of confirming this which are currently in progress. One would be to verify with the State of Nevada (fortunately my home state so this should be relatively easy) whether they have received any recent filings. The second would be to discuss this matter with Jeff Reid himself.
Please don't accuse me of being a basher. There is something terribly wrong going on here and I just want to share my opinion and help us address what is going on. I have lost a lot of my hard earned money and am suffering just like many of you are. Still long and strong, praying for something new. Thank you.
