Here are the risks in penny stocks. Nothing wrong with it in theory but just don't try to say that it's better than a real company like COVAD.
EFCR filings - a story of dilution. How the frick do you think you're ever going to get a sustained rise on this POS if you have this as an overhang?
MANY OF OUR SHARES OF COMMON STOCK WILL IN THE FUTURE BE AVAILABLE FOR RESALE. ANY SALES OF OUR COMMON STOCK, IF IN SIGNIFICANT AMOUNTS, ARE LIKELY TO DEPRESS THE MARKET PRICE OF OUR SHARES .
Assuming all of the 649,890,789 shares of common stock we are offering under this prospectus are sold in our offering, and all of the shares of common stock issued and issuable to the selling security holders are sold, we would have 108,040,816 shares that are freely tradable without the requirement of registration under the Securities Act of 1933. 56,055,189 shares of our common stock are “restricted securities” as defined under Rule 144 of the Securities Act of 1933 and 61,054,214 remaining shares are a part of the public float for a total of 116,769,403 shares. Of these shares, approximately 55.33% of our shares are owned by our officers, directors or other “affiliates.” These individuals may only sell their shares, absent registration, in accordance with the provisions of Rule 144. |
