Yes, I actually am of the opinion that the shareholder update released today was very refreshing and a very detailed and well explained status of what is going on with RFMK lately. I think the CEO did a very good job in assuaging concerns for shareholders in regards to all of the recent events on both the corporate side, the business side and with the stock.
I think the CEO was forced to decide between two evils, an R/S or expanding the A/S. Obviously it would have been better for shareholders if management could have already brought the company to profitability by now and kept the A/S at the same level and halt the dilution to raise funds but the company is still losing money every quarter and not taking in hardly any revenues. Q1 numbers could have been better than Q4 but we don't have those figures yet. I think with this shareholder update we basically were informed that the second part of the Ironridge funding deal is dilutive. Apparently the "150 pref shares" for the $50k/month just confused the matter, as now the CEO is stating,
"We raised this number to 5 billion shares so that we could execute on our funding once we are fully reporting and to execute our strategy of acquisitions and purchases of immediately accretive businesses and, essentially, becoming a holding company ...
We have raised the amount of shares authorized in order to tap into our funding agreement with IronRidge Global ...
Raising the authorized share limit will enable us to make acquisitions and purchases that will be immediately beneficial to our bottom line.
we are going to be aggressive to acquire products from other companies and, in some cases, acquire part of or all of those companies that will be immediately accretive to revenues and profits ."
So it would appear that the raise in the A/S was to simultaneously make room for more dilution for the Ironridge deal funding as well as making room for possible acquisitions going forward. I think the CEO is hinting that RFMK may eventually become mainly a holding company and so acquisitions and partnerships are likely on the horizon once the 10K, audit and uplisting are completed.
" The holdup on everything is the audit . It took many months of forensic accounting to bring everything up to date. The primary problem in getting through the audit is how we have classified expenses and income.
We will get the audit completed . When will the audit be completed and the 10K filed? Again, I am hopeful it will be very soon ...
The 10K is complete ; the Form 10 is well under way with our legal firm in New York. We just need the audited financials for the 10K and some minor work on the Form 10 to submit to the SEC.
Once the audit is complete, we will be able to file the 10K and the Form 10...
Legal opinions regarding transactions that occurred in 2011 will be submitted within the next week or two ."
If all of this is actually true then perhaps RFMK has decent potential to provide shareholders with gains going forward. It all sounds rather bullish and positive. However, we have all been awaiting these same corporate goals for some time now so at this point it is probably wise for shareholders to be of the opinion that they will believe it when they see it. This alleged audit is going on an entire year now so IMO using the word "soon" in shareholder notices month after month for over a year does not seem to provide much confidence for loyal shareholders. Indeed, it does not seem like much progress is happening when shareholders are not privvy to what is going on behind the scenes. Shareholder notices like the one today is greatly appreciated by all longs IMO and it is a big step in the right direction when a CEO takes the time to provide detailed clarity and transparency to the shareholders.
I thought this excerpt was a rather positive note about the new dry herb vaporizer product,
"We expect to have new graphics and a working prototype within the next two weeks ."
http://rapid-fire-marketing.com/rapid-fire-ma...april-2013
Perhaps real news and realized corporate progress is on its way. For the sake of loyal shareholders, we can only hope.
May the force be with us.
GLT A
$RFMK
