Yesterday morning, Luxuriant Holdings released an update via their Facebook page in regards to the global lock and increased authorization issue.
CEO Luther Jeffries noted in the update that part of the global lock was to eliminate a class of preferred stock. In order to remove these preferred shares, the max authorization would have to be increased. Once increased, the preferred shares would be converted to common stock and then retired. When questioned on the time remaining on the global lock, Luxuriant Holdings replied “Best case 10 days worst case less than a month.” The company was also questioned on the how the float will look once the retirement and lock are completed, in which Luxuriant replied that it will be much smaller. To keep up with PRPM and express your questions and concerns visit their Facebook.
What does this mean for PRPM? First off, as a shareholder using E*TRADE (which seems to be one of the only brokerages actually restricting shares) this has been incredibly frustrating. With Scottrade users and users of other brokerages being allowed to sell off has decimated the price per share. Prior to the lock PRPM was seeing daily and weekly fluctuation between $0.0007 and $0.0011 per share. Post “global lock” the price per share has seen lows of $0.0002 per share, and closed this week at $0.0004 per share. Since myself and other E*TRADE users are unable to buy or sell, we will be riding this one out. Users of other brokerages will have the ability to buy-in very low and increase their stake or day trade the 100%+ change in PPS.
Frustration aside, there is a light at the end of the tunnel. Once the retirement is completed, the float will be much lower, increasing the value of each share. The initial purchase of shares was to play the retirement of shares which was announced on March 21st, 2014 (see here). The global lock and dip have placed a damper on our optimism slightly, but this was a long play in the first place. Patience is a virtue; or at least we hope it is.
Rosenberg (OTC Daily)