Notis Global Inc. (fka NGBL)

[loanranger]

I'm neither of those things ("long-biased traders and investors of MDBX"), but maybe you'll find this interesting:

4 companies turned up in a previous search for dividends paid in restricted shares ( http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95164623 ).

One of those was MWAR. It issued a PR on 12/17/13 indicating that it would be issuing 2 restricted shares for each share currently held:
"The dividend common shares will be "restricted" as defined in the Securities Act of 1933. Rule 144 allows for the public resale of restricted securities only if certain holding period and other conditions are satisfied. The start date for the holding period for the dividend shares shall be the record date of December 31, 2013."
http://www.otcmarkets.com/stock/MWAR/news/Muscle-Warfare-International--MWAR--Announces-Common-Stock-Dividend-to-its-Shareholders?id=73367&b=y
Sounds vaguely familiar, right?

A follow up PR was issued 2 weeks later (1/7), including these statements, which suggested things were progressing.....it should sound equally familiar:
"MWAR management stated that the Board approved this stock dividend to reward the loyalty and patience the shareholders have shown as the Company has developed its business plan from concept to operations.
The dividend common shares will be "restricted" as defined in the Securities Act of 1933. Rule 144 allows for the public resale of restricted securities only if certain holding period and other conditions are satisfied. The start date for the holding period for the dividend shares shall be the record date of January 7, 2014."

Yesterday they issued a PR with the headline "Muscle Warfare International's (MWAR) Common Stock Dividend was Approved by FINRA". However, it included a BIG surprise:
"All shareholders of MWAR owning common shares on the record date of January 7, 2014 shall receive two (2) shares of MWAR common stock for every share held by such a shareholder. Any shareholder holding stock in certificate form will receive another certificate via mail and any shareholder with stock deposited with the DTC a certificate will be sent to the DTC via certified mail, the shareholders who only hold shares in an account will have the additional free-trading shares credited to their account by DTC.

For example, if a shareholder holds a 10,000 share certificate of MWAR common stock at the close of business on January 7, 2014 that shareholder shall receive 20,000 additional shares of MWAR common stock via a certificate. However, if you had 10,000 shares on account with the DTC 20,000 additional free-trading shares will be credited into your DTC account."
http://www.otcmarkets.com/stock/MWAR/news/Muscle-Warfare-International-s--MWAR-Common-Stock-Dividend-was-Approved-by-FINRA?id=74508&b=y


I suspect (can't be sure) that FINRA said something like "You've got to be kidding me!" at MWAR's proposal to IMPOSE 2 restricted shares on its investors for each share they held, tripling the shares outstanding while effectively cutting their tradable shares by two thirds. I expect (can't be sure) that MWAR, rather than abandoning the plan altogether, just decided to proceed with a regular forward split...FINRA wouldn't have a problem with that and MWAR could hang on to the "reward the loyalty and patience the shareholders have shown" bull that they lathered shareholders up with in the first place. Maybe they even expected to end up exactly where they did.


Will MDBX do the same thing? Remove the "restricted" aspect of this thing in order to get FINRA to approve it? If so, wouldn't the share price be automatically divided by 3 on the pay date, as I believe is the case with the run-of-the mill stock dividend?


BTW, I don't think that there are any examples "of a legitimate company (other than MDBX) that has, in the last 5 years, issued a dividend in the form of restricted shares" where the dividend has been announced AFTER the record date. Maybe some "long-biased traders and investors of MDBX" can dig a couple up....somehow I doubt it.