SafeCode Drug Technologies Corp. (fka SAFC)

[appalled]

I want to start out by saying that I think the product that SAFC is supposed to be trying to bring to the market looks like it is an extremely good one with phenomenal sales potential. That being said, without the release of bad news, a company's volume does not go from 120k shares to 21.5 mil shares and lose share value unless someone is filling just about any bid. There is no way I believe that kind of volume came from short sellers.

So what I see happening is insiders dumping shares.

I have not seen any evidence that this is a pump and dump. It is lacking the pump. But, as I have said before, since June 30 the company has expanded the OS by about 60 mil shares through a slow trickle of repeatedly issuing 5-10+ mil shares. That does not include the 30 mil shares the two managers purchased in June. That means that about 45% of the current OS has are shares that have been newly minted since the middle of June. If the new OS that we get on Friday is 220 mil or more as expected it would indicate that the expansion of the OS is accelerating as the PPS is dropping.

It lends further credence to my belief that the insiders know the terms of the guarantee in the license agreement require SAFC to make up the $5.2 million SAFC still owes through additional shares if other arrangements are not made. SAFC is unlikely to have a PPS of .70 in time and MFT* is unlikely to accept other terms.