Every penny stock files S3's. It is the reason they went public in the first place; to raise investment dollars from the capital market.
Issuing shares multiple times is extremely common to raise money.
The difference boils down to is management honest, and not yet profitable.
Or are the insiders looking to own a "printing press" whereby they keep printing shares to pocket the money. It seems criminal but completely legal.
Along the way, lots of penny investors get burnt. It's sad, but if the insiders are honest, you bet on them putting forth their best efforts.
Not every entrepreneur graduated number 1 in their class. 1 in 10 start ups fail in the first 5 years. That leaves a lot of penny investors with nothing to show for their investments. Some of them understood the risk. Some don't and just see evil where none exists. They remain bitter forever.
If you or any reader hasn't investigated Phillip Frost, I highly recommend you do it. It's important to understand how he runs other companies, to understand how he will probably try to influence how DRNE runs.
My history with Phillip Frost is general news reports easily available on the internet, and two companies (ROX and OPK) I have followed since 2009.
It's obvious to everyone now, Frost's influence at DRNE is mighty, and comes with a purse with strings attached to it; the instructions on how to use that money.
Nussbaum is Frost's man.
DRNE is going to operate differently going forward. My friends are adding to their positions. I did last week by quadrupling my position.
After the news subsides and before Nussbaum can start having an effect on the company, the PPS may slide a bit. I will look to add on dips.
S3's don't phase me.
You invest in people, not companies.
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