Yesterday, Greenfield Farms Food Inc. (OTC:GRAS) scored an exceptionally weak trading session. The volume generated during the trade was only 41 thousand – far below the daily average. At the end of this feeble session, GRAS share price was 5% lower – $0.21.
However, GRAS made an announcement after the session, which was later reverberated by a stock promoter.
Around 4 p.m. yesterday, GRAS announced that it had entered into a stock purchase agreement for up to $10 million with Ascendiant Capital Partners LLC. According to the agreement, Ascendiant will have to purchase $10 million of GRAS common stock over the next 24 months.
An hour later, the news was spread around by a couple of paid newsletters, issued by Stock Castle and Wall Street Advisors. The most interesting part of the newsletter, however, is the most neglected one by investors – namely, the part that comes at the end and is usually in small font.[BANNER]
In this regard, the disclaimer of the newsletter revealed that the promoter has been compensated $100 thousand and 3.5 million free trading shares. There was no information about the paying party though, so it is unclear whether the compensation was provided by the company itself, or by a non-related third party.
Still, it is enough for investors to imagine what a damage these free trading shares can make on the share value when they hit the market, especially given that the public float is 18 million shares as indicated by OTC Markets
