Platinum Studios, Inc’s common stock will be deleted from OTC Bulletin Board effective May 21, 2012 on account of failure to comply with rule NASD 6530. The company will be added to NBB.
NBB means that the stock may still be noted on pink sheets but not listed on stock markets.
As for Rule 6530, this has to do with filing:
Pursuant to NASD Rule 6530(e), any OTCBB issuer that is delinquent in its reporting obligations three times in a 24-month period and/or is actually removed from the OTCBB for failure to file two times in a 24-month period is ineligible for quotation on the OTCBB for a period of one year.
Platinum’s stock had been struggling early in the year, although a single press release was enough to boost it:
Thus after the long depreciation in which PDOS lost the largest part of its value within a year, now it looks like the trend may reverse. RSI is now pointing up and the MACD lines have crossed. Platinum Studious is most probably by far not in a good financial condition as the company has not provided any current data on its financial results and operations. The last report is more than two years old and according to its PDOS had in June 2009 current liabilities for more than $9.8 million, and another $11.4 million in long-term debt against total tangible assets of around $1 million.
Founded in the 90s, Platinum Studios has had one of the most curious tales of any comics publisher…including the fact that it never really published any comics, but instead spent years and years developing IP and buying all the rights to hundred of creations. Platinum was created when founder Scott MItchell Rosenberg was flying high after an obscure comic he published by Lowell Cunningham became the basis of the original smash hit film. In many ways the MiB model has become the holy grail of the comic-to-movies IP success story, proving that no matter how obscure the source material there is money to be made. The eventual publication of COWBOYS & ALIENS and the movie seemed to be a big boost to the company, but as we all know C&A was an underperformer. The Dylan Dog movie DEAD OF NIGHT was also a big bomb.
Meanwhile, those who want to dig into the Platinum message boards (only for the truly dogged) will find all kinds of red flags as to why they might not want to issue a filing for two years, and the possibility that founder Scott MItchell Rosenberg is creating a new shell company:
“I believe I said in my last message that my last post would be my last, but I decided to mail in some questions to give Mr. Ruteledge and Mr. Roseberg a last chance. I told them both that I was not posting these questions publicly and giving them a chance to answer them first. These were the questions I emailed in:
1 – RIP Media has received over $558,113 of payments from the company listed as “participation fees”. A quick google of RIP Media shows Scott Mitchell Rosenberg as the President and sole officer. Can you explain to us, the stockholders, these payments? Or the additional $347,500 currently carried on the books owed to RIP Media?
2 – Assignment & Collateral Holdings, LLC or ACH Holdings seems to be the majority stockholder these days, considering 1,005,426,136 warrants, previously given to Mr. Rosenberg as part of an extension of certain notes, seems to have been transferred to ACH. According to the last quarterly report, Mr. Rosenberg no longer has any financial interest in ACH. Strange, that, given that their Nevada Corp address is 2533 N. Carson Street in Carson City, NV. Mr. Ruteledge, PDOS’ new president, has his offices at 318 N. Carson Street in Carson City, NV. Strange coincidence that the offices of an unrelated party would be blocks down the street from our new President. Can you please explain the relationship between Mr. Rosenberg, Mr. Ruteledge, and ACH?
3 – The transfer of those warrants from Mr. Rosenberg to ACH has made it so that Mr. Rosenberg no longer controls 30% or more of PDOS. According to our last quarterly, this means that PDOS no longer has an exclusive option over the Awesome Comics library, a large portion of the Platinum Library. Does this mean the upcoming Youngblood, part of the Awesome library, movie will no longer be a Platinum production? DID Platinum just lose a large chunk of it’s library thanks to a little creative shuffling by the President and CEO?
All of these can be verified with a little googling and looking at the latest filings. None of these were addressed on the call, nor did I receive a private response, both of which I would have accepted as addressing shareholder questions.
Instead, and please anyone clarify this if I am misunderstanding it (I really hope I am), the call reported that they are creating ANOTHER corporate entity, transferring the IP to that company and then selling stock in THAT company in order to raise more funds? Please, someone, anyone, correct my understanding of that. My money would now seem to be sitting in a shell with millions of dollars in debt and nothing else.”
OKay we couldn’t resists. Digging around the Platinum message boards reveals many disgruntled shareholders, including one with the screenname PDOS4Life (PDOS is Platinum’s trading name symbol) who revealed he’d bought millions of shares at 6 cents. His (or her) final post is a bit sad:
Not going to be surprised anymore — when you invest in Penny Stocks, 9 times out of ten, you are gambling away money you don’t really need. So if you did something as stupid as I did, and rolled over your company 401(k) and then invested all of your hard-earned $100+K trying to get rich overnight — well then you deserve the fate I received. That $100+K is now less than $5K.
Lesson learned here is NOT TO INVEST money you cannot lose in penny stocks. Don’t care what people say. A nice target fund will do you better.
— don’t have a choice at this point!
P.S. Suffered thru some serious depression where I had bouts of not being able to breathe, irregular heart beats – all that stuff. Can say that I am back to normal now, just with a constant reminder that my 5 million shares of PDOS are just sitting there collecting dust. Luckily for me, my other company 401(k) is around $50K and I have it invested in a target fund. May have to work a few more years until I retire, but then again, I have my health back and a great family that supports me and has forgiven my stupid investing practices.
Many lessons to be learned there, including the the feasibility of the entire ethics of our stock market-fueled economy, and the fact that buying 5 million shares of a penny stock may not be the best thing to do with your retirement money.
As we said, ironically this news comes as MEN IN BLACK 3, the source of all Platinum’s major capital, intangible and otherwise, is opening. However, according to the header on their message board, they have a lot more movies in development…it only takes one. Maybe a resurrection is possible.
Heidi MacDonald is the founder and editor in chief of The Beat. In the past, she worked for Disney, DC Comics, Fox and Publishers Weekly. She can be heard regularly on the More To Come Podcast. She likes coffee, cats and noble struggle.