Thx Papageorgia. The numbers are what they are, and with SIPC right now the most important numbers are the O/S and debt. As a new/startup company projecting revenues from Q1 and Q2 sales and agreements just being signed, sales, cost of sales, and the usual metrics are really irrelevent. The story for now is told by DEBT and SHARE STRUCTURE.
The filings show they had 62k in debt. With no revenues/cash, they used shares to pay down 10k of that debt. This is both a good and bad thing, really.
Why good: Shares were used to pay off debt, not to take on more. Healthy balance sheets are a net positive, and this moved SIPC towards that.
Why bad: 50M shares at .0002 is a hefty chunk hitting the market. At .01, the note holder can sell SIPC shares at 50 times what they paid. At current pps they still can sell for a 46-bagger.
The real questions here, ones that we will never be able to find out because SIPC is OTC Pink and does not release this info, are:
Is the strike price .0002 for the remaining $52k? (Would mean 262M more shares)
Are the shares restricted from sale by the note holder, and if so, for how long? (6 month hold, 12 month hold, immediately available to sell...)
Related to the above, how many of the 50M have reached the market already?
For these reasons my article cites SIPC as an upside play, and one with commensurate risk. That being said, the reward outweighs the risk. The shares are being used to pay down debt, and the company is expanding into more revenue streams rapidly.
I have put my position public, obviously, and I am playing here at least into April. That being said, it's the OTC Pink. No guarantees and keep your eyes WIDE open.
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