In response to your comments, what is expensive for a smaller reporting company is a function of what capital it can raise.Expenses for running even the smallest reporting commpany can be $50,000 to $80,000 a year considering that in addition to auditing and edgar costs one now has XBRL reports to file as well. Combine that with the difficulty placing private placement shares under $.05 with brokers,it is not illogical that perfectly legitamate companies simply cant raise the capital to stay reporting. You may be completely correct that this is not always or usually the case, but it is illogical to state that every company that de-registers is shady. I know of a company that was perfectly legitamate but couldnt raise funds to stay reporting .As far as CGFI they certanly have a rather curious track record though.
So are you saying if a company is faced with either closing, or trying to stay open using convertible financing, it should
just choose to close ?
I dont disagree that convertible debt financing rarely leads to a successful company, nor there are not many instances as you indicated that shady operators engage in such financing.And in the case of CGFI convertible financing combined with certainly misleading and silly press releases, became a road to destruction for whatever shareholder value the company had.
