No DOUBT CD Holders Itching to Bail
Considering about 3,500,000,000 shares traded on the Nipton news with several 100,000,000 daily share volumes trading in the following months, it’s no doubt loads of CD insiders bailed and made a mint.
There’s also NO DOUBT these CD holders are waiting for next PR to dumps en masse. Everyone knows it’s time to get out of ERBB and here’s why:
American Green makes $24,000 in revenue per year which is not enough to pay for 1 “consultant” for 1 quarter. AG has spent $1,250,000 to generate the paltry $24,000 of revenue for 2016. How on earth can a company absorb such massive losses and still be in business?
CONVERTIBLE DEBT - American Green issues shares to CD holders for capital to fund operations, shares discounted by 50% off the 52-week low. As if the cheap shares weren’t a sweet enough deal, CD holders also get cash from AG to pay interest on the debt which is essentially a ponzi scheme because the cash used to pay CD holder A just comes from cash received by AG from CD holder B who is in turn paid by cash AG received from CD holder C (or even CD holder A who is back for more cheap shares).
But the CD shuffle is about to change in a bad way for American Green
New regulations restrict OTC stocks like ERBB from issuing convertible debt if the share price is below .01
This means AG can no longer suck from the teat of the CD holders. With the minuscule revenue American Green generates, capital will dry up in less than a quarter and there won’t be any cash to fund just 3 months of the outrageous consulting fees and director/officer compensation paid to the AG crew, much less fund a warehouse grow build, Nipton, AGM or the other window dressing used to lure ERBB buyers.
The new regulations will force American Green to reverse split ERBB in a last ditch effort to get share price above .01 where the company can access convertible debt. There is absolutely no way American Green will generate the $1,000,000+ in revenue needed to sustain operations. Even if the company sold 100 AGMs at $20,000 a pop, the $2,000,000 generated isn’t “profit”. Nobody even knows the margins on an AGM sale; there’s the cost of goods, the cost of shipping, the cost of installation, maintenance....I’d be surprised if AG made even 20% margins on an AGM sale but who are we kidding, they haven’t sold a single AGM in 2.5 years since putting it back on the market and that was AFTER 2 years of failing with the AGM’s predecessor, the Zazzz.
So that’s where we are, a few steps away from the edge of the cliff. It’s like watching an wounded impala skulking about the desert with vultures circling overhead and lions sniffing about. You’d love to help the poor impala but it’s best to stay away because you don’t want to get caught in the feeding frenzy. Bottom line, as American Green said themselves “don’t invest your lunch money here” because even though the cost of a public school lunch will buy you thousands of ERBB shares, your money is better spend on 2 year old fish sticks and rock hard tater tots.
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