Emmanuel Gyamfi, the interim CEO of Eline Entertainment Group, Inc. (OTCMKTS:EEGI), released a letter to company’s shareholders in February. He started the letter stating that he has received many emails recently with respect to EEGI shares being offered in the open market.
The CEO said that the recent price fluctuation and selling is the result of a plan that shareholders will be happy to know about it. Rather than being a sign of something negative on the horizon, it is an indication of a remarkable turn in existing structure.
The highlights
The interim CEO of Eline Entertainment said that the first concern of investors is if the recent selling is a sign of dilution. He clarified that the company has a float of almost 1/3 of its total outstanding shares. It indicates that there is a large amount of restricted shares, and since they have not done many stock issuances in the last few years, a big percentage of them are more than one year old. This issuance record signifies that the holders have rights to free up their holdings and sell them.
The fact is that newly freed up stock of a non-reporting stock are usually done through VFIN or VNDM. These two entities accept shares in certificate form, and also it is not an expensive transaction. In recent years, VFIN and VNDM have expanded their operations and no longer only deal in certificate shares.
In any case, selling through these entities can be routed from one or more shareholders. There is no best way to identify who they are, and Eline Entertainment has no control over what these people do. It is vital to note that these shares are previously outstanding, and so it is not dilution, but just selling pressure. Investors should not come to the conclusion that sales through VFIN and VNDM are always negative just because they have this stigma attached to them.
Progressive Care Inc (OTCMKTS:RXMD) Updates on Building Permits
Progressive Care Inc (OTCMKTS:RXMD), through its subsidiary Pharmco LLC, released a status update on building permits. As of end of the month of July 28, the company has cleared all regulatory process of the County of Miami-Dade with the approval process commenced with the City of North Miami Beach.
On July 25, 2016, Progressive Care reported that Chicago Venture Partners has released its first funding amount of $250,000. They plan to deploy these proceeds for the construction of the warehouse space, and to meet the general working capital needs. The company projects to get consent and release building permits in the imminent period.
Parikh Mars, the CEO, said that they are delighted to be on the cusp of getting building permits. The warehouse space expansion is an important step in reporting considerable growth in different segments. They are thrilled that with the completion of the building process, they can install automation system and boost sales across the board.
