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ValueTrader119

04/24/14 10:51 AM

#40310 RE: RICHEShaveWINGS #40307

As per their conference call and multiple public disclosures they said they have worked out multiple agreements with their debt holders to slow down the dilution and continue to talk to them about working together. That is why we are down to only a 5 or 10% dilution rate instead of a 20 or 30%+ rate from a couple years ago.

Keep in mind these are debt holders that put in money multiple years ago and are trying to get their money back with a little profit after waiting so long. They could push them to convert it all faster but they have been in talks with them for a while to control the dilution and although no one wants any dilution it is one of the few things that is almost certain with all pink sheets and public companies in general.

I personally haven't seen many companies that go public and don't dilute. It only happens when a public company raises millions at one time from a large investor that is willing to wait multiple years to convert or get paid back but even in those cases after a year or 2 they usually convert as well.

That is just how public companies work. If they didn't use shares to raise money, pay employees, buy companies and pay back debt then they should stay private. If they are going to take on additional time, effort and expenses to be public they basically have to issue shares or they are not utilizing the public vehicle to grow their business faster than a private company.

Keep in mind ALL public companies even the billion dollar ones issue shares all the time. Some times it's for employee options or to repay past debt holders or to acquire companies but every public company issues shares - that's why they are public.

In any case, if you are going to trade penny stocks you have to realize their is a 99.9% chance that they will be issuing shares at some point and a super majority of them dilute shares at a rate of well above 10% so take that into consideration when trading ALL OTC stocks not just ACGX.




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LuckyCruiser

04/24/14 1:25 PM

#40394 RE: RICHEShaveWINGS #40307

That was addressed in the conference call which is on a sticky. I have great confidence that they have been working on this really hard this year and with the outstanding chart from the beginning of the year it appears to me they are doing a good job of things. Let's get ACGX into multi-pennies and I feel that will allow management to do some wonderful things that will be reflected in a positive manner to the shareholders. I would think that management would love to add more traditional financing (banks)and be able to apply the saved time and effort of dealing with the debt holders to continued growth. Steven St. Louis did mention a new bank bought out their old bank and that he hoped to get an additional credit line at a very low interest rate. all in my opinion