She won't be able to prove he's diluting every week, but he is diluting every month because TA shows that.
On whether it's Rich's dilution for expenses or for debt, only Rich knows and is he is probably hiding it from investors. He has not PRd it, 8Kd it, nor by any other means informed the public at least yet. Maybe in fins...
All she has stated is her speculation that Rich is diluting every week. What does it matter? He is diluting. Jan about 19 months ago, OS was 115M. This past Jan it was 814M. This past March, it was 820M. In May, it was 849M, then 866M, 891M, and now it's 901M.
A reasonably prudent person would draw the conclusion that he's diluting...either for debt or expenses or both.
It does matter which is the source...the breakdown, but Rich isn't telling...at least yet. But let's give him a break and see if he puts the breakdown in his next fins. He might. If he doesn't, I speculate that he's using the debtor announcement to hide his own dilution. He's probably figured it out (after 6 other businesses he ran into the ground with dilution) that everyone has learned what gagging TAs does to investor confidence, so this could be a new approach.
He should be letting investors know the breakdown every week or every month, however often he issues shares and their purpose. How else will we know debt is being paid off and expense dilution is waning? It would also be nice to know how much he issues shares for?
The broker he's using will require a significant discount. The normal discount for Pinks is 50%, but I've seen 65%. What that means is at 50%, he must issue twice the number of shares for the same money to get the broker to accept the risk, to buy them from Rich and resell, which is the process (not like retail..,when we buy/sell stock). These screwings from brokers/MMs in the Pinks are highway robbery but there doesn't seem to be anything illegal about it. It just doubles dilution every time Rich issues shares. The discount could be lower for the debtors shares, too...another unknown, another detail unreported by Rich, at least yet... wait for the fins.
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