Another company to face the same destiny as Med Gen Inc. (OTCBB: MGEN) is - Nexia Holdings Inc.(OTCBB: NEXA) .Company’s CEO, Richard D. Surber with the accrued salary of $168,026, is surely having nightmares over the last days.
With a ten year history, Nexia is a holding company with operations in retail clothing, health -beauty industry and commercial real estate.
As of May 18 there were 1,747,995,086 outstanding shares of the issuer's common stock. During the three months ended March 31, 2007, the Company issued 542,517,500 shares of common stock. We calculate If they continue diluting the stock at this rate, by the year of 2010 there will be approximately 34 billion shares in the market.
Though company's revenue doubled for the first quarter and hit $738,774 compared to same period in 2006, there is still a slight problem out there. This does not yet cover all expenses for this company, which are 2,2 million per quarter.
Company is facing huge costs, which they try to cover by issuing new shares. Moreover, this company is not concentrated and owns three completely unrelated businesses, which could lead their whole business to the dead-end.
The chart below says that once company’s share price hit $160,000, but then plunged to $0.0005 which makes a 99.99999999999% loss. Roughly speaking, if you have invested $160,000 it would now be worth 5/100 of one penny.
For the current price per share 0.0005 it puts the market cap of this company only $850,661.
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Richard Surber
CEo-NEXA