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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Walkingshadow who wrote (3129)12/28/2004 9:03:30 AM
From: Venditâ„¢   of 8752
 
Reid

I would be curious to know who DJX Ltd.is. It is not uncommon for a small under funded company to go to an off-shore venture capitalist for money to fund them. The company normally sells the off shore company their class A stock or some options arrangement in return for a loan.

If the company gets in trouble and cannot make a note payment, the off-shore company calls the note due and by law will get first strike at the companies assets leaving nothing for the U.S. stock holders once all is said and done.

This is a common way that things play out when things go bad in penny stock OTCBB companies. I've been their and done that.

Reid
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