E.D., I check in once in a while to see what GONT is up to, just because pump and dumps disgust me. They have very strange bedfellows too.
Setting up subsidiaries to suck the cash out of BNEZ would be an interesting ploy.
The following is a possible scenario, and not a claim that this actually happened...
What if Jack, in setting up the "spinoffs", awards himself a 90% controlling interest in each "new company" and shifts all the company cash to them. The spinoffs obviously don't have any products, so what else would they consist of?
Suppose he has $500,000 in the "spinoffs" and controls 90% of the spinoff company stock (the other 10% held, presumably, by other BNEZ shareholders). GONT comes ambling by, looking for cash. Jack has controlling interest, so he can sell the spinoffs without asking the opinion of the BNEZ shareholders (that's apparently the case here).
Jack is eager to sell, too. He says "fine, GONT, I'll give you the $500,000 if you give me $1.5 million worth of your shares."
GONT doesn't care how many shares it prints, trust me. They aren't interested in ever making a profit.
GONT then can claim it spent the shares on an "acquisition" and not just to keep their dying operation going.
Jack can dump the GONT shares on the market quickly - perhaps driving the price down and only getting $1 million for them. Not a bad deal for him, though, doubling the money he started with.
Of course, if GONT hyped the deal enough, Jack might even get $2 million for the stock when he sells it.
Everybody's happy:
1) GONT gets cash to get going.
2) Jack gets even more cash than GONT winds up with.
3) The other BNEZ shareholders get a few nearly worthless GONT shares.
Okay, maybe not everybody... |
