Either the principals of this company are very strategic and intelligent; or they have no clue. Today wraps up the 7th trading day since the after hour announcement of increasing the share structure from the post r/s 7 million class A shares to 1 billion. That news alone drove this stock down to its close today at about .16 from around .50 a few weeks ago. For those who say it is being shorted, so what. If the demand was there, the pps would rise. The demand mostly comes with a tight supply of shares, and the fact that this company has enormous potential.
There has to be some reason why this company simply did not increase the share structure to say, 15 million, 20 million, etc. The company could have stood to make more selling shares on a slightly increased A/S, than to go for broke and increase to one billion. It is so counterproductive that it screams there is more to it. I doubt the increase to one billion was to save on postage and filing fees for the regulatory notice. Based upon the low volume, and dropping price, the company has caused its capital raising ability to be severe impaired. It simple math. They will need to sell more and more shares to raise what they could have with a slightly higher A/S. Is it possible that this is to shake some leaves from the tree? The market cap is now 931k. At the rate its going, the cap will be less than the actual cash bond of about 500k posted with the state in a matter of days. The principals of the company did not R/S their class B shares. They did not stop paying themselves. They have to know that what they are doing could easily end up in a class action for a breach of the fiduciary duties owed to shareholders. Because too many things don't make sense at all, I have to wonder if there is something more to it than just watching the grand sell off of a billion shares driving the pps into the dirt again. JMO gg
AI
