I wish this update was all sunshine and rainbows, but it’s more like the wild, wild West.
In true form, $LGBS announced a merger this morning in the cannabis sector and the stock took off beautifully as expected, for all of about 7 minutes…
Let’s just say it was a bloodbath. The stock plummeted to $0.0007 where it finished the day.
It was a miserable event to witness, and even worse to experience.
There seemed to be some notion of convertible debt dumped into the float once news was released.
Understand, sometimes it isn’t about price for the financial lenders, it’s about quantity. They may have an enormous amount of equity and need immediate cash. It isn’t about controlling the price, but attracting as many buyers as possible. Then they unload as many shares as they can above a certain price threshold.
Like their predecessor, LGBS turned into another sketchy disappointment, and is a prime example of what gives the OTC a scammy reputation.
Yeah, I said it…
Legends Business Group ($LGBS) is a closely watched stock as of late but seems to be caught up in controversy, and traders are chomping at the bits.
PR released earlier today stated that a new venture is about to be announced, but first LGBS has to bring their OTC profile back to current status.
Here’s the full text of today’s release: https://www.nasdaq.com/press-release/legends-business-group-inc-announces-a-joint-venture-with-algaetech-international-and-no-material-20190319-00696
Here’s their most recent tweet (grammer and all…) which confirms that they have indeed submitted their otc paperwork.
Let’s take a look at the rest of their feed.
As you can see, it took four days to complete the NVSOS update, but LGBS followed through on their word and got the job done. In turn the stock saw a nice little bump and corresponding correction which brings us to our current PPS.
Here’s the NVSOS listing: https://www.nvsos.gov/SOSEntitySearch/CorpDetails.aspx?lx8nvq=SrTJNB4HKmlS9aanV2GTvQ%253d%253d&nt7=0
So where’s the controversy, you ask?
Rumor has it that $LGBS is embarking on a joint venture with Algae World 2020. Algae World is a subsidary of KYNC… and there’s the drama llama.
KYNC recently went through a promotional period and their stock had an enormous run. Unfortunately the company also had a substantial amount of recently converted debt spill into the float and depreciate the price.
Traders call this “dilution,” and it’s a dirty, dirty word.
LGBS has publicly commented that they do not have a deal with, nor even know of any mention of KYNC, and why should they?
Their business dealings have been with Algae World 2020, not KYN Capital. In fact, it could be possible that KYNC’s little fund raise could be used to finance the Algae/LGBS project, but I digress.
This brings me to my final point. The community has created controversy primarily for their own amusement, and in spite of themselves…
Much like the $SNMN/$TLRY fiasco, traders on social media made one too many assumptions and spoke out before doing their due diligence. It’s an unfortunate side effect of having an overly engaged audience.
On a positive note it did provide ample opportunity for traders to buy the dip. A few lucky traders were able to get their bids filled at $0.0009, but most had to enter above $0.001 which should still provide plenty of upside in the days to come.
The real question is what exactly do Algae and LGBS have up their sleeves? We caught wind of a joint venture, but no other details have emerged.
We do know that Algae has recently expanded their operations into Bangladesh. So it’s possible that LGBS is looking to gain an international footprint, but ultimately we just have to wait and see.
All in all, it is my personal opinion that the stock has been arbitrarily held down and is poised for growth.
I don’t preach conspiracy theories, but it appears that certain traders spread broad cloth assumptions about this company’s relations in order to help their peers load the boat, and attempt to control the float.
Why would groups fight over who controls the float?
They think this stock is going somewhere, and everyone wants a piece of the action.
The final question is, will you get yours?