Dilution can be used to raise capital. But in the OTC, we often see it used as a payday or toxic note holders cashing in. There are several ways to track or predict dilution.
Transfer Agent Verified-- OTCMarkets.com will report if a company has a stock transafer agent who is reporting the company's outstanding and authorized shares.
OTC Markets: Security Details (1)-- OTCMarkets.com Security Details provides the amount of shares outstanding (Outstanding Shares) and the amount authorized to be issued (Authorized Shares).
The date indicates when the share structure was updated.
Financial Reports: Convertible Notes--
Convertible Notes are debt that, once matured, can be converted into common stocks, therefore increasing the OS.
The Balance Sheet will report the total amount of debt.
Pink Current-- @TonnerOne filed their attorney letter on 09/14/21. Due to the OTC Markets backlog, it's taking approximately 14 days for a company to upgrade to Pink Current.
Expected Date: 09/28/2021
$TONR
(3/6)
Debt Cancellation--
Per their latest 10Q, the company is negotiating with creditors to find ways of resolving their debt obligation.
The company changed their authorized shares from 4B to 3.2B. With the OS nearly maxed, it will prevent diltuion.
* No toxic notes or dilution.
* CEO owns 70% of the common stock.
* Float is 1.07 billion.
Interested in this healthcare services, medical equipment, and digital health company?
$SHOM
(2/7)
$SHOM is a medical company that focuses on:
* Digital healthcare (Health Coach App)
* Weight Loss (True Diet Plan)
* Wearable Medical Devices
Let's go through each.
$SHOM
(3/7)
Health Coach App (1/2)--
The medical health consultation app provides in-office medical care and assessments for:
* Anxiety
* Depression
* TCM Comprehensive
* Health
* Nutrition
@TonnerOne will upgrade to Pink Current any day. With their press release highlighting their business plan nearing, let's take a look at what's going on.
$TONR
(2/5)
Share Structure--
To prevent dilution, the company decreased the authorized shares from 4B to 3.2B.
Company spokesman, @CalvinRitche, announced no reverse split.
Per the 10Q, they are seeking a share reduction via old certificates.
$TONR
(3/5)
Operations--
Within 2 weeks we'll see a press release detailing:
* New management
* Direction for the company
* Reverse merger update
What is a reverse split--
* A reduction of shares which increases the share price
* Does not change the value of your shares
* Market cap does not change
The High-level Process-- 1. Announcement via 8-K, 10-Q, 10-K, or articles of incorporation. 2. Shareholder approval (if required). 3. Company submits notice to FINRA 10 days prior to the effective date. 4. Split posted to the OTC Daily List.