You are correct! The company did exactly what it was designed to do... enrich the 2-3 at the top while leaving the shareholders in subpenny land. It was designed to "fail"...... They took hundreds of thousands of dollars out and kept signing toxic debt deals that diluted the shareholders’ value... Also, don't forget about the $250k+ PPP loan they personally received!
Here is the plan:
Get stock shell Give illusion of the company on the verge of producing a product that will have great demand Fill the BOD with person's in that industry (Pay with cash + Stock options - no need to consult with them) Get loans based on projected sales and current stock value Use loans to pay the executives Get Toxic loans to pay back original loans - back with by stock
When you are no longer able to get financing backed by stock because the value is so insignificant, do a reverse split and announce the acquisition of a new company.. change the product that will be offered... Rinse and repeat.