With the next merger which should be 1000% bigger and better there is the new way of raising capital as to not damage share structure or pps. And with the OS essentially restricted you can bet they are already working on this.
In fact, this new way guarantees a higher pps and the higher pps guarantees investment.
Additionally, with the new short rules TITL is clear for reasonable sailing without short manipulation abuse illegal practices used by shorts going forward.
Reverse Boost Program
It is no secret that companies go public in order to raise capital and grow their businesses. The theory behind it is: the more capital the company can successfully raise and inject into its businesses, the higher the share price. Unfortunately in Pink Sheets, non-reporting issuers do not have the luxury of reporting issuers, such as institutions and large corporations. In most cases, institutions are forbidden by law to invest in these high risk non-reporting OTC companies. This opens up doors for overselling, also known as short selling. Although, Pink Sheets stocks cannot be "shorted," they can be and often are oversold. It's simply using different name to get the same result: selling something that one doesn't have. This creates a vicious circle of a company trying to raise money and market-makers playing with the company's stock, doing as they see fit to make quick money as the company's CEO and principals' dreams go down the drain.
MMG started experimenting with something we named "Reverse Boost."
In the traditional method or way, most companies hire IR and awareness companies and issue 3rd party stock to start a promotion or awareness campaign. Read the disclaimers in any opt-in emails you may get. As the promoter promotes a certain stock, it creates volume and price appreciation (because of the volume), and they sell their position in the storm of activity. Then it's up to the company to continue the momentum. We all know how well that goes. Eventually the company returns to ZERO volume.
The MMG Reverse Boost works differently and is quite unique: 1) We take no stock whatsoever in our awareness, hence no dilution. 2) We inject cash into advertising in Google and Yahoo, and pay other awareness groups in cash. 3) Through our call centre in Europe, we call accredited investors to buy our clients' stock in the retail market only. 4) We present investors with the idea that this is a great company with a lot of potential, resulting in a huge upswing in the future of the security.
Once these accredited investors began buying up issuer security, the price starts moving up, creating a lot of volume and buying pressure.
At that point in time, MMG approaches other financing sources that only take the issuers' stock as security and do not sell it in the open market. Instead, they evaluate the share price, the highs and lows, based on certain criteria. They typically lend or finance the issuer X amount of money on their block of stock, which is held by the financier and not to be sold for a reasonable length of time. The only time this stock is sold is when the price falls or when the investor calls the loan and the company does not have the resources to pay it back.
In order to level the playing field, we make this public through our ticker-tape service and advise everyone about the featured companies of the week.
In summary, this creates a win-win situation for the company and shareholders.
In the traditional way, the company would take stock from its treasury and sell it, creating pure dilution. Then a company's IR representatives will tap dance and do whatever they have to do to say that there is no dilution. Remember their duty is to their employer.
The bottom line is that the company is raising capital and does it the only way it knows: dilution.
This hurts small-time shareholders in the short-, mid- and long-term. If the company can use this money successfully, the share price may retrace and small shareholders could see some nice gains.
However, if the company continues to dilute and does not use the money properly, and the market-makers get the sense that dilution is going on, they send out their basher cronies and the price continues to plummet until there is nothing left to cover.
So the company stock gets battered by dilution and massive discounts, and there is the oversold to take into consideration.
With the Reverse Boost, there is no or very little dilution.
We experimented with Reverse Boost as a pilot project on several issuers.