Replies to post #3477 on RCMW Group Inc (fka RCMW)

[Dave1000]

An expectation of dilution is factored into the current PPS by the market. This news is a very positive sign that all of the other recent good news was not just part of a P and D. The company will grow and it's value will increase as cash flow increases. Time to buy a little more!

[stockreaper]

I gotta agree with you. I've been watching this for a while. This could be huge dilution. At the present pps of a little over 10 cents, this could potentially be 300 million more shares, which is a huge amount. The only positive is that it hopefully helps confirm this a legit business with some potential, but the dilution will need to be factored in.

Also, I really hate to see shares exchanged for financing because once it starts there is potential for manipulation of price to lower levels so the finance provider receives more # of shares over time.

[techtrade]

There are a few flaws in your analysis that I'd like to point out:

This agreement is not a $30 million dilution. It is nothing more than the ability of CPOW to tap funds as needed to grow their business, but there are strict limits as to how much dilution can take place at any given time, and the terms governing the share price per dilution are extremely favorable to CPOW shareholders IMO (moreso than other similar agreements that I've seen in the past with other companies. Also, the investor is prohibited from owning more than 9.9% of the O/S and all shares owned are restricted meaning the investor would have to file with the SEC before being able to re-sell any shares.

What this agreement does IMO is show that an investor has done serious due diligence on CPOW and decided that instead of $15 million they'd like to invest as much as $30 million in CPOW, which affords CPOW the ability to accelerate their growth rapidly with cash on demand, subject to tight restrictions.

If you look at the history of other companies trading on the pinks or OTC, this type of dilution for projects considered to be favorable to the growth of the company often leads to much higher share prices. Look at a chart of GSDC, they recently tripled their outstanding shares at terms much less favorable to their shareholders (dilution took place at .10 per share when the stock price was .18) and shortly afterwards the stock price more than doubled.

Just some food for thought. I suggest you read the agreement carefully, and reconsider your math.