Paul, I'm not as worried about the death spiral financing as I am about the creation of synthetic shares (although both are bad). Reason is, Joe can stop the financing once revenues, up front payments, or IPO money is used to finance operations. However, revenues don't matter if synthetic shares are being used to drive down the price.
If whomever creates GNBT shares (or already has), and then sells them into the market (dark pool or otherwise), our price declines. With the thin volumes we regularly see, it wouldn't take many "created shares" to put continuous pressure on the pps. Many here have wondered "where are all these shares coming from?" as the price declines (particularly into good news) - maybe this is what we've been seeing. I see that potentially more destructive and much longer termed than the issue of financing with dilution.
And the concept even fits the NUGX share saga - were those shares created out of nothing with the help of a shady broker, immediately diluting the value of NGIO? Probably an entity with dividend shares that started the "symbol", but then is it possible that shares were manufactured that ensured the pps was driven down after the initial reaction (which we now know has the potential to hurt the true owners' value of NGIO when it comes out)? One thing WC said in the video - "only the momma cow can have a calf" (or something rural like that!), yet we have NUGX trading without GNBT/NGIO knowledge or permission. Since I'd never heard of this phenomena until the last week or so, I'd never put 2 and 2 together. But now, it sure fits the pattern and facts of NUGX.
Too bad we don't have an "ape nation" putting pressure on whomever to determine if this is what is causing some of the issues with GNBT/NGIO. I don't believe management currently has the time nor the resources to investigate fully, and certainly the SEC will not spend time or effort on a small OTC company. Maybe those type of investigations will happen later, but by then who knows where the two companies will be. Just my thoughts - certainly no proof one way or the other, but it appears to me that the facts we have seen over the last year and a half fit the very crime being described in the video.
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