Hey myronc,
Dutchess has been one of those US opportunity funds, which market themselves as a fund management wanting to help the promissing and publicly traded companies. Their creative financing structure (promissing to raise capital quickly and efficiently) contributes to the decrease of share price value of each company they have been helping. In reality those funds are concerned about their profits.
I give you an example of MDV
On 18 November 2010 MDV signed an agreement with Dutchess to provide long-term funding of up to A$20 million -("Line Amount") over three years.
On 17/11/2010 MDV’s share price was 0.014
Since the agreement with Dutchess, MDV issued 128,405,008 shares to Dutchess, during the period to 14 June 2011 (sp from 0.011 to 0.004). If they shorted shares down the trend, they would trigger many stops and they would be able to buy them back at a lower price (nice profit?)
Before consolidation (1/11/11) MDV share price was 0.003.
MDV's share price decreased from 0.014 to 0.003 with the help of Dutchess
Further, on 8 August 2011 MDV signed an unsecured funding agreement (the “Funding Agreement”) with La Jolla Cove Investors Inc (convertible Notes). It seems Dutchess and La Jolla are connected
Pages: 10-16
http://media.wotnews.com.au/asxann/01220890.pdf
Hey myronc,Dutchess has been one of those US opportunity funds,...
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