"After the merger was completed and they raised $2 million dollars the shares outstanding has barely gone up."
The merger occurred on June 3rd. There were slightly under 4 million common shares issued and outstanding at that time. These statements from the latest 10Q do not support your non-factual theory.
"Between June 4 and June 30, 2014, seven holders of Series A Preferred Stock converted a total of 38,100 shares of Series A Preferred Stock for 3,810,000 shares"
"Between July 1 and September 30, 2014, seven holders of Series A Preferred Stock converted a total of 98,650 shares for 9,865,000 shares"
"The Company issued 960,000 shares of common stock on August 25, 2014 pursuant to the conversion of 9,600 shares of Series C Preferred Stock."
And, while the Preferred Series B-1 only convert at a ratio of 1/1; the insiders that printed the shares made sure to include a few clauses that allowed them to be liquidated at $4.00 a share.
"The Series B-1 Preferred Stock contains a liquidation provision whereas in the event of a fundamental transaction (such as the merger which occurred on June 3, 2014), the shareholder has the option to receive a preferential amount of cash equal to 400% of the stated value per share. On June 6, 2014, the sole holder of Series B-1 stock liquidated 87,500 shares for $350,000 leaving a remaining balance of 68,731 shares of Series B-1 preferred outstanding."
The previous 10Q states the outstanding share count after the merger was executed.
"At the closing of the agreement, the Company had 3,920,700 common shares, 595,000 preferred stock series A, 624,671, preferred stock series B, 156,231 preferred stock series B-1 and 355,000 preferred stock series C issued and outstanding"
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