Replies to post #80894 on Blue Diamond Ventures Inc (BLDV)

[Wild N Free]

None - He's not an investor of BLDV

[Kool Aid Man]

CC question: BLDV share structure=ticking time bomb???

I sent the following to someone who knows a lot more than I do about such things--

Currently 92.86% (5.386 billion) of the 5.8 billion authorized common stock has been issued and is outstanding.

100% of Preferred B shares have been issued. They convert into common at a rate of 3-for-1 or 300 million common.

97,500,000 of the of Preferred C shares have been issued. They convert into common at a rate of 10-for-1 or 975 million common.

102,500,000 of Preferred C shares are available to be issued. They convert into common at a rate of 10-for-1 or 1.025 BILLION common.

Another company (www.Harvest360.co ) has agreed to let itself be acquired by BLDV (reverse merger correct?). Once the deal is finalized BLDV also hopes/intends to buy another 24% of Cann10-NA. They bought 25% in Dec 2017 with 700 million shares valued at $750k. Oone would expect that to cost at least another $750k which --at today's price of .0007-- would require another 1.07 BILLION shares (1,071,428,571).

And that's not including any equity stakes H360 management will surely expect.

So with all --or virtually all-- of authorized the shares sopped up, what's left to issue in order to finance and grow a business?

Q: Is their share structure completely blown? If so, what options remain --authorizing more shares... a reverse split? IMO more than half of all common are owned by long suffering bagholders of previous scammer John Quincey Moaning. Consequently, all their money has been blown by him which means they are nothing more than albatrosses any new management would love to get rid of.

Thoughts?

Here's the reply I received--

That sounds like a ridiculous situation. The company that's supposedly being acquired could be a scam. Or the story is just made up; something intended to try to keep shareholders interested.

If, however, a real reverse merger is planned, then one way or another, probably a reverse split will be part of it.

I can only say that the Harvest 360 people don't realize what's wrong with this shell, and further, don't realize they could simply start from scratch. I gather the general counsel doesn't know much about securities law.

My take is that they're making a really stupid mistake, just to save a little money and get their company public a few months faster.

Disclaimer: I have no idea of what's going on or what will or won't happen or whether this person is right or not. I merely passed along share structure the numbers disclosed by Josh Alper asked the question. I personally don't believe H360 or BLDV are running a scam. However, it's possible that H360 either doesn't grasp the fact that BLDV is basically maxed out of shares --or if they do-- they intend to resort to one of the aforementioned options.

The CC question EVERYONE should submit is--"DO YOU CATEGORICALLY REJECT THE OPTION OF PULLING A REVERSE SPLIT -or- AUTHORIZING MORE (DILLUTIVE) SHARES? A R/S is how management often rids itself of old shareholders in order to start anew. If that happens it would be catastrophic.