.Another Problem Here's the link to a Spiny/Oryx post where the quote below was taken:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=71981836
"Shares that a contractor gets are his pay, not an investment. He has to sell to get paid. Much better for the company, though, because they don't have to go through an intermediary to get cash for shares (plus commission) and then pay the contractor, and they can issue the shares only as needed."
It's debatable if using shares to pay for services is better for the company. However, paying for services with shares is not good for shareholders, who buy the company's stock with the hope it will appreciate in value. Paying for services with shares kills shareholder value because there is a constant supply of cheap shares in the open market which puts downward pressure on the share price. It's not a wonder that there are so many SFMI shareholders that are not happy with the company's management as they have not provided tangible shareholder value, for years, that long time shareholders can take to the bank.
Spiny/Oryx, you've been a shareholder since the Melba days and how much value has been created for you in all those years? With a 4 cent share price it's safe to say it's not much, if any. People buying today are potentially in a better position because they haven't had their capital tied up for years in a company that has provided zip for shareholder value.
Paying for services with shares has helped drive the stock price down to 4 cents. Some have suggested that there will be a "New" injection of cash. If the cash injected is equity based then the shareholders get it up the butt again as the lower the share price is at the the time of the PP the more DILUTION that is created. At 4 cents there are a lot more shares created to get one dollar than there would be if the share price was a buck... This could be a VERY good opportunity for the rich Brazilian, but not so good for long time shareholders.