Dec. 11 at 6:28 PM
$TDIC Equity Purchase Agreements with small private investors like Hudson Global Ventures are often used by struggling micro-cap or penny stocks.
The model is this:
1. The company (Dreamland) signs a contract allowing it to sell shares to the investor.
2. The investor gets shares for free or almost free (in this case: 736,018 "commitment shares" for ZERO money).
3. When the company issues new shares to raise money, the market price often:
• collapses,
• shareholders are diluted,
• and the investor can resell the new shares at a profit. In a few months, they will have 200-300 million shares, and at very low prices of 0.1 or less, they will earn a 250:1 RS and the dilution will begin again. Chinese scams, always the same story.