While the dilution is only 7% which is rather small for a micro cap start up corp, the real issue is as you alluded to, will it ever stop?! After the transparency of the quarterly filing I moved back to accumulation mode from holding because of the fundamental positives and the low pps, however now with this recent dilution, yet again, it gives me pause. I remain ecstatic about the long term fundamental positives for RFMK and all the potential, but for the short term the frequent dilution, however small just really puts a damper on attempts for shareholders to gain any momentum in the trading of the stock. The investors continue to stay positive and nursing the small flame into a fire that could make for quite a hot stock in RFMK, however it seems each time the flame begins to catch fire, here comes another tranche of dilution to suffocate it. It is getting rather frustrating for investors I imagine and it would be fine to frequently dilute in small amounts for operating cash if there were a large number of investors pouring into the stock on a daily basis, but that is not the case, therefore the dilution really makes it difficult for the stock to go anywhere at all.
At some point management or insiders possibly converting pref shares need to hold up and ask themselves would it not be more wise to be patient and wait longer until raising funds via stock sales so as to get momentum going in the stock, which is critical for these small penny stocks and also possibly be able to get more per share share later on at higher valuations. I should hope the dilution finally does completely stop at some point this year. I was assuming it would go to 1B at the figure and then end, but it does not look like that is happening. This gives me pause and after substantial accumulation for me today I am back to a holding pattern to wait to learn what kind of fundamental developments arise in the coming days or weeks. After each tranche of dilution, the investor must recalibrate fair value and realize his holdings are worth that much less and then re-value what new fundamental developments could come down the pipe and how and at what level such catalysts could bring shareholder value. Overall, shareholders have over the last six months seen MAJOR improvements with the business and potential, however so far it has all been UNrealized and with the dilution investors have had to be forced into increasing their share stake in order to keep their percentage ownership, so hopefully soon it will be the companys turn to show REALIZED gain in the form of Q2/Q3 filings showing growing revenues (actual realized sales), uplisting, official announcement of large CannaCig inventory, distributor contracts and the like.
We have much to look forward to fundamentally and there is still a lot of hope, I just hope one day investors here can get a win rather than just forever keeping hope alive. You can do it RFMK!
Do or do not, there is no try.
$RFMK!
