Replies to post #14439 on East Coast Diversified Corp (fka ECDC)

[adb2003]

OC, south ridge is using vfin to move ecdc shares. It is using vfin to moves shares issued by ecdc from them into the market. It has those shares because ecdc has given them to south ridge in exchange for cash. This is how equity purchase finance works. It's up to south ridge to hold or sell them. They did not buy a stake in the company, for a %age of the company, they agreed to an equity purchase agreement capped at 10 mill. This will continue until;

The company make money of its own -or- the PPS goes up reducing the number of shares they need to sell to raise the required cash -or- the share price hits levels too low to trade...

I doubt the latter, what they really need is a verifiable deal, that will appreciate the value, preferably with a form order.

This is not attractive, but its a fact of life for startup's with limited access to funds.

Good luck to all, I am still waiting the shift, I don't think we are too far away IMO.

[flaflyersfan]

OCMillionare, ECDC sells discounted stock to Southridge Partners for cash and then Southridge sells those free-trading shares to ECDC investors through the market maker VFIN.

Good luck.