POTNETWORK HLDGS I (OTCMKTS:POTN) How to Make it Work
POTN seems to be in a hot space with a hot product, but they may mean nothing for shareholders, with the stock trading at 6c there is debt that that is being converted at .003c, seem strange? Yes it does, in fact one would even question the legality of the conversion. 42m shares were virtually gifted to the note holders.
If someone tells you this does not matter, they are lying. At the current rate of dilution the shareholders will be crushed. How do you make it work? STOP THE CONVERSIONS.
PotNetwork Holding, Inc. to Retire over 52% of Issued and Outstanding Common Shares, the headline that seen the stock rally, also very misleading.
From the release: (Original)
PotNetwork Holding, Inc. (OTC Pink: POTN) announces the retirement of 300,000,000 common shares held by principal shareholders. This reduction of over half the issued and outstanding common shares will be exchanged for non-trading preferred shares.
The next question is, how dumb do you have to be to not see the blatant falsehood of the “retirement” nothing was retired, it was exchanged, exchanged for “preferred” shares, so those shareholders actually got a better deal than they had, how “preferred” are these shares? What if 1 preferred converts to 10 ordinary, then as a shareholder you just got whacked! What if they are preferred in relation to a distribution of profits, what if 80% of the profits are to be payed to the preferred, why did not the company simply state the type of preferred?
Have you read this?
Thae Facts From the filings (Original) POTNETWORK HLDGS (OTCMKTS:POTN)
Promissory Note in the principal amount of $1,850,000 pursuant to the terms of a security purchase agreement dated of even date therewith.
The security derives from an original promissory note dated June 2, 2014. The annual interest on this note was eight percent (8%). But the interest does not accrue since the addendum agreement in exchange for a fixed conversion rate of $0.003 per share.
After the conversion of $126,000 in the 2nd quarter, the balance of the note at June 30, 2017 is $1,836,186.
Let me do that Math for you, 42-M new shares a Quarter, I have no idea how the .003 is getting past the regulators as it is as toxic as debt can be, the fact is this will end in disaster.
The debt spiral will crush the shareholders considering there is over 600m more shares to be issued.
How Shareholders can cash in on POTN.
I do like to make money and see other people make money, so here is my advice if you are long POTN.
Write to or call
Worldwide Stock Transfer, LLC
1 University Plaza
Hackensack, NJ 07601
Ask them how those .003 conversions can be legal, not making acquisitions, just for informational purposes. Ask what lawyer is writing the opinions.
Securities Counselors, Inc
1333 Sprucewood Lane
Deerfield, MA, 60015
Ask them the same questions.
Ask the lawyers who Sign is the holder of the note so you can research it.
If enough of you do that you shut down that questionable conversion practice and the stock could hit 12c.
If you do nothing 10s of millions of shares will go to Sign every quarter, the preferred shares might suck up the profit or you stake in POTN and you will be left, another victim of the anonymous message boards pumpers.