That looks like a blueprint for a pumpadump. They've done all the necessary stuff: the creation of the shell, the change in control, the creation of convertible debt, and the forward split. But the chart suggests that they didn't bring in aggressive promoters at the right moment. They should have been there back in January. It's not too late, of course. Maybe they were waiting to promote their new line of business.
Hard to say what Kylemore's done with its stock. Though I imagine it does intend to sell what it has left. Same for the founders.
No ideas about Howard; he could be a front man, or he could really be running the show. It's possible that some of his stock--since he has a lot, he can't sell it quickly--will be used in future financing arrangements.
The cancellations aren't unusual. I think they do it just to keep the o/s reasonably low, and because they think stock cancellations appear to potential buyers.
It's very likely the debt will eventually become convertible, if it isn't already. Probably it'll convert into a bazillion shares. Or the conversion, if done a little at a time, will be floorless.
If they do a big promo, in the end it'll crash and burn. If they don't do a big promo, price and volume will gradually subside. Or, if it actually gets into a legitimate business--that, of course, would be the rare exception to the rule--it could succeed.
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