Replies to post #30529 on Tauriga Sciences Inc (fka TAUG)

[deafelephant]

If they are raising money to pay off bad debts with high convertible notes or to award themselves huge salaries, the stock will go down.

[diannedawn]

I think I can provide a possible reason for that

Will Taug go down if they are current and why? Please help me with this.

Remember that TAUG ran into the auditor problem just prior to the A/S increase vote...
as soon as they got the A/S increase approved,
they got delisted.

TAUG NEEDED this increase BADLY...
they already had less available shares than they might possibly owe...
Seth Shaw admitted this...
He said it was the reason the new auditor would not sign the 10K until they got the A/S increase passed.

Our audit firm KBL was concerned about the fact that our share count of 929,000,000 was too close to the authorized limit of 1,000,000,000. If all of the "out of the money" warrants were to be converted (at some point), there would be a scenario in which the total shares owed to investors could have possibly exceeded 1,000,000,000. Owing more than 100% of authorized shares is a Section 5 violation, or a violation of Federal Securities Laws. Our new audit firm felt uncomfortable signing off on the FY 2015 Form 10K without successfully amending the authorized first. So we mailed the proxy on July 17th and worked our rear ends off to reach quorum. Because we didnt have 15 days for the mailing (because our 10K was due on July 29th) we didnt get the benefit of broker non-votes counting toward quorum. We were able to reach quorum with 51.7% voting (needed 50.1%) and we successfully increased authorized.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116018756&txt2find=section

Needless to say, MONTHS with little to no revenue coming in, and a maxed out A/S, they had a bit if a cash squeeze.
THEN, when they did have the shares
they got delisted from the QB/were no longer current.
That just made it harder for them to get financing, even though they now have 1.5 Billion freshly minted shares!
Seth Shaw has also said this.
"The Company has been unable to reliably secure funding since its removal from the OTCQB on July 31, 2015, due to the fact that potential investors can no longer depend on Rule 144 exemptions as they pertain to direct investments."
http://finance.yahoo.com/news/tauriga-sciences-inc-updates-shareholders-123000877.html

Once TAUG succeeds in getting current, and especially if they succeed it getting back on the QB,
you can expect them to start "financing" like mad...

FINANCING = DILUTION and they have got somewhere around 1.5 Billion shares...
SOME have already managed to fly out the door.

DILUTION = SHARE PRICE DECREASE
You are cutting your pie pieces small and smaller...
Already its ridiculous to talk about getting back to 10¢...
look at the O/S NOW compared to back THEN!

They would have to find one hell of a "new business"...
and lets get real...
all Mr. BSeth does is throw **** at the wall and hope something sticks.
Bamboo wipes? Eco-Spray?

So there will probably be an initial spike on the filings...
followed by dilution