Strategic Global Investments, Inc. (STBV)

[Mudcat18]

The offering is being done via a Reg A exemption. Reg A offerings can only be sold to accredited investors. Accredited investors are those with net worth of greater than $1 million. You cannot ensure that everyone buying shares in the open market is an accredited investor, so the company cannot use that avenue. They must sell the shares in private transactions. It is the buyer in the private transaction that distributes the shares in the open market. Therefore, the accredited investor buys shares from Andy at $0.0001 (that is the price on the offering circular, so there is no other price at which shares can be sold) and sells them in the open market and the accredited investor pockets the difference.