In spite of admissions by the company that do not bode well for investors, the public maintains its appetite for shares to their own inevitable detriment.
November 12, 2014: It can truly be said that those packing away shares of iHookup Social, Inc. (HKUP) are doing it to themselves by ignoring recent company filings. The revelations through these submissions clearly indicate that anyone daring to hold onto shares might as well bend over to make the upcoming lesson easier to take.
On October 14, 2014, HKUP filed a Form 8-K announcing that it had lost its right to be quoted on the OTCQB due to the fact that the share price had closed below the requisite $.01 for 30 consecutive days. The company surmised that, among other reason, the conversion of debt to common shares and the subsequent dumping of those shares is what led to the degradation of the share price. No sh*t, Sherlock! Looking at the chart, we can see that the dumping of shares began almost immediately after the change of business, company name and ticker symbol from TFER to the current HKUP.
We also note that the company only revealed these massive conversions after the fact and has not provided details as to the number of shares that exist after these conversions. This has to be considered to be a deliberate act, as does the attempt to keep these material events as quiet as possible, by submitting the minimum filings rather than issue the press releases that are customary when the company has "good" news. The only conclusion we can reach is that the insiders needed someone to take it in the rear and be left holding the bag.
And there is much more stock left to come out. This Form S-1 filing from July 28, 2014 attempted to register another 166,666,668 shares, but the filing was withdrawn before it could be deemed effective. You can bet that the intended beneficiary of the S-1, Beaufort Capital Partners LLC, didn't suddenly to decline to cash out. It will be interesting to see how that will happen, but it can only end up in further dilution. Beaufort is linked to several other Pump & Dump subjects, including HKUP's previous incarnation as TFER as well as GEIG, DBMM, NBRI, SENY, SWHI and the one year old AXXE promotion. All of these schemes have raped investors.
When it does take effect, the reverse split will be the second in a year, the first coinciding with the company's change from the mining sector into the online dating market, not exactly a logical progression. Those who were left holding the bag after the TFER Pump & Dump campaigns were treated to a one for 20 rollback last April, just prior to the change of company name and symbol to the current HKUP.
So in spite of the company's admission of share dumping and a pending reverse split, shares have seen a significant jump in trading volume over the last six weeks. This can probably be attributed to the hiring of two stock marketing firms, Viral Network Inc. and Integrative Business Alliance LLC, as announced in this Form 8-K filing of October 15, 2014. While minimum promotion has been conducted through the mainstream email newsletters thus far, the increase in social media chatter where dupes are induced to buy stock, seems to coincide with the retaining of these firms.
The number of shares created by the conversion of debt referred within the October 14, 2014 filing will be unknown until the next quarterly financials are filed. Those are due within the next several days. With that filing, we expect the revelation of tens if not hundreds of millions of shares newly created in the last quarter. As conversion prices decline with the price of the stock, the number of shares required to satisfy the note increases proportionally. Over the last quarter, HKUP's share price has declined by about 85%. As a result, we expect share dumping to hasten with the release of the next financial report.
The lesson to be learned by the naive trader here is that it is not enough to simply rely on press releases for company information. Those who will be surprised by the upcoming continued decline in share price and reverse split would be well advised to follow company filings for deeper insight to material events.