Allstocks.com's Bulletin Board Post New Topic  New Poll  Post A Reply
my profile login | register | search | faq | forum home

  next oldest topic   next newest topic
» Allstocks.com's Bulletin Board » Micro Penny Stocks, Penny Stocks $0.10 & Under » MGON

 - UBBFriend: Email this page to someone!    
Author Topic: MGON
DOUBLE ME UP
Member


Member Rated:
4
Icon 1 posted      Profile for DOUBLE ME UP         Edit/Delete Post   Reply With Quote 
This is currently trading at .045 and they are stating from what I get out of it, that they will be buying it back up to.20 a share... please correct me if I am wrong here!!!
Megola Inc. (OTCBB: MGON), announced today it has opened a brokerage account with Glendale Securities, Inc. which will enable the company to buyback its common shares in the open market. Megola and Glendale Securities, Inc. will follow the guidelines found in the 1934 Act's Rule 10b-18 -- Purchases of Certain Equity Securities by the Issuer. Technically, Rule 10b-18 provides a safe harbor only for repurchases of common stock.

"The Board of Directors unanimously voted to open an account which will give the company the ongoing option to buy its common shares in the open market," says Joel Gardner, President and CEO of Megola Inc. "The reasoning behind the share repurchase program is twofold. First, an immediate buyback strategy will enable the company to potentially reduce the number of outstanding common shares thereby putting pressure on any short sellers. Second, the company views share repurchases over time as another way to essentially create shareholder value by purchasing any stock below $0.20 which is the current conversion price per share for the 1,092,255 Preferred Series A Shares that are still outstanding," continues Gardner.

Megola has recently reduced the outstanding shares by 7,031,800 from 33,570,455 to 26,538,655 by moving management's restricted common share volume back into Preferred Series B holdings. Series B Shares have no voting rights or warrant options attached to them. Management also currently holds 641,459 Preferred Series A Shares, or approximately 58.7% of the remaining Preferred Series A Shares eligible for conversion to Common, which may further help to deter short sellers from targeting Megola's common stock.

Recent trade activity of Megola's stock since June 1, 2010 (after conversion dates of Megola's preferred series A and B shares), shows that of the approximately 7.9 million shares traded over 50%, or approximately 4 million, have been Short Sales.

For more information on Hartindo products and Megola Inc. please visit www.megola.com

As of September 7, 2010, the Common Share structure for Megola is as follows:

Authorized: 200,000,000
Outstanding: 26,538,655
Restricted: 130,287
Float: 26,408,368

--------------------
FIONA

Posts: 68 | From: SEATTLE | Registered: Jul 2009  |  IP: Logged | Report this post to a Moderator
BooDog
Member


Icon 1 posted      Profile for BooDog     Send New Private Message       Edit/Delete Post   Reply With Quote 
quote:
Originally posted by DOUBLE ME UP:
This is currently trading at .045 and they are stating from what I get out of it, that they will be buying it back up to.20 a share... please correct me if I am wrong here!!!
Megola Inc. (OTCBB: MGON), announced today it has opened a brokerage account with Glendale Securities, Inc. which will enable the company to buyback its common shares in the open market. Megola and Glendale Securities, Inc. will follow the guidelines found in the 1934 Act's Rule 10b-18 -- Purchases of Certain Equity Securities by the Issuer. Technically, Rule 10b-18 provides a safe harbor only for repurchases of common stock.

"The Board of Directors unanimously voted to open an account which will give the company the ongoing option to buy its common shares in the open market," says Joel Gardner, President and CEO of Megola Inc. "The reasoning behind the share repurchase program is twofold. First, an immediate buyback strategy will enable the company to potentially reduce the number of outstanding common shares thereby putting pressure on any short sellers. Second, the company views share repurchases over time as another way to essentially create shareholder value by purchasing any stock below $0.20 which is the current conversion price per share for the 1,092,255 Preferred Series A Shares that are still outstanding," continues Gardner.

Megola has recently reduced the outstanding shares by 7,031,800 from 33,570,455 to 26,538,655 by moving management's restricted common share volume back into Preferred Series B holdings. Series B Shares have no voting rights or warrant options attached to them. Management also currently holds 641,459 Preferred Series A Shares, or approximately 58.7% of the remaining Preferred Series A Shares eligible for conversion to Common, which may further help to deter short sellers from targeting Megola's common stock.

Recent trade activity of Megola's stock since June 1, 2010 (after conversion dates of Megola's preferred series A and B shares), shows that of the approximately 7.9 million shares traded over 50%, or approximately 4 million, have been Short Sales.

For more information on Hartindo products and Megola Inc. please visit www.megola.com

As of September 7, 2010, the Common Share structure for Megola is as follows:

Authorized: 200,000,000
Outstanding: 26,538,655
Restricted: 130,287
Float: 26,408,368

so they work a deal to be able to buy their own shares insted of just putting up the cash to buy them back themselves. I haven't done any DD on their ability to come up with cash so lets just look at what the deal is. 6 months to pay it back (from 31 Aug) or else. I only briefly scanned it and am on someone elses computer and cant cut and paste, bummer. need to look for the fine print for the interest payments and take a note at the .001 conversions and their effectiveness. As well as what the company is required to keep on reserve.
Here's the deal...
http://sec.gov/Archives/edgar/data/1144392/000114420410048551/v196195_ex10-2.htm

Posts: 7799 | From: Virginia | Registered: May 2006  |  IP: Logged | Report this post to a Moderator
BooDog
Member


Icon 1 posted      Profile for BooDog     Send New Private Message       Edit/Delete Post   Reply With Quote 
anyway, thinking they'll likely run some kind of campaign to get the price up so they can make the payback.
Posts: 7799 | From: Virginia | Registered: May 2006  |  IP: Logged | Report this post to a Moderator
DOUBLE ME UP
Member


Member Rated:
4
Icon 1 posted      Profile for DOUBLE ME UP         Edit/Delete Post   Reply With Quote 
Boodog, I thought I read it to say they were going to buy it up to .20 a share.. at current pricing thats 4 times what it is now...I got so burnt on Inar, I am just trying to validate that I am reading this correctly...thanks for responding...

--------------------
FIONA

Posts: 68 | From: SEATTLE | Registered: Jul 2009  |  IP: Logged | Report this post to a Moderator
BooDog
Member


Icon 1 posted      Profile for BooDog     Send New Private Message       Edit/Delete Post   Reply With Quote 
quote:
Originally posted by DOUBLE ME UP:
Boodog, I thought I read it to say they were going to buy it up to .20 a share.. at current pricing thatís 4 times what it is now...I got so burnt on Inar, I am just trying to validate that I am reading this correctly...thanks for responding...

Think about the logic here. Why be public to begin with if all you care about is the PPS? And then the lender will just dilute like crazy once they start getting their shares lol. If you get the bounce take it and run imo. See how long they can keep buying shares under .2, I think you'll actually be very surprised - but thatís just my guess.

--------------------
All post are my opinion. Do your own DD. Who's clicking your buy/sell button!?

Posts: 7799 | From: Virginia | Registered: May 2006  |  IP: Logged | Report this post to a Moderator
   

Quick Reply
Message:

HTML is not enabled.
UBB Codeô is enabled.

Instant Graemlins
   


Post New Topic  New Poll  Post A Reply Close Topic   Feature Topic   Move Topic   Delete Topic next oldest topic   next newest topic
 - Printer-friendly view of this topic
Hop To:


Contact Us | Allstocks.com Message Board Home

© 1997 - 2021 Allstocks.com. All rights reserved.

Powered by Infopop Corporation
UBB.classic™ 6.7.2

Share