Boomer, The problem isn't that they had to sell shares as that was obvious from the beginning. They were supposed to make payments of 150k at certain times ( 4 installments of $150,000 each on each of June 15, 2012, June 30, 2012, July 15, 2012, and July 31, 2012 ) to pay the one million dollars for the merger. If you look at the chart you see that there is no volume to speak of before 7/24 so where did they get the money for the earlier payments? This raises the question in my mind that the payments were not made and the merger is not happening or it will be rescheduled and accomplished at a sub-penny rate. This realization and the fact that they spent 60 to 100 K of shareholder money on a failed stock promotion prompted my "sickening" comment.
They had 10 K in the bank in March so yes, you knew they were going to have to sell stock to raise money for the merger but the stock sales don't show up on the tape and there is no record of a private placement.
Also there has been no mention of the last payment being made on July 31.
I've said my piece, if I'm wrong I'll admit it. I would answer any questions you put to me but after that I'll just back away from this thing, good luck to you.
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