GME Innotainment Inc (GMEV)

[agribusiness72]

Ten Million 600 Thousand More Shares will mean grand dilution, but that's not the major problem here, ask yourself this, WHY would GMEC, "a Florida corporation", need to sell more shares for funds if the CHINA company was making so much money? Buyer Beware, this is only good for the few who will take the money and run, do you think those in the US are going to funnel the funds to China? If you haven't run away yet, you better start. You can read the entire S1 but here's what is interesting:

DETERMINATION OF OFFERING PRICE

The offering price for the shares sold to Kodiak under the Put will equal 90% of the lowest closing bid price of the common stock of the Company during the five consecutive trading days immediately after the date that Kodiak receives a Put Notice of draw down by the Company of all or a portion of the equity line of credit with Kodiak. There will be no underwriter discounts or commissions.

DILUTION

The issuance of further shares and the eligibility of further issued shares for resale will dilute our common stock and may lower the price of our common stock. If you invest in our common stock, your interest may be diluted to the extent of the difference between the price per share you pay for the common stock and the pro forma as adjusted net tangible book value per share of our common stock at the time of sale. We calculate net tangible book value per share by calculating the total assets less intangible assets and total liabilities, and dividing it by the number of outstanding shares of common stock. As of September 30, 2012 our net tangible book value was ($392,634) or ($0.0053) per share.