3 ms·

Interesting that it is almost certainly some kind of scam, yet they chose not to stay low key. Rather, they went with press releases, contract signing events,

by tyingq 5y ago

Interesting that it is almost certainly some kind of scam, yet they chose not to stay low key. Rather, they went with press releases, contract signing events, etc. Maybe just a purposefully faked PR buzz "let's go viral" thing? Edit: Ahh, so "pump and dump" seems to be the prevailing guess.

JumpCrisscross 5y ago
> it almost certainly some kind of scam They tried to privately place $10mm in November [1], though that was terminated a week later [2]. They announced a new auditor a few days later [3][4] who doesn’t appear to have been auditing any U.S. public companies prior to this July [5]. They’re also selling $20mm of shares as of September [6] via an Atlanta-based broker-dealer who appears to do these for Chinese penny stocks for 7 to 8% fees [7]. (Searching the firm on LinkedIn brings up D.C.-based general counsel [8], a guy in Miami Beach and a dude in Ghana.) All this suggests a pump and dump with possible laundering connections. [1] https://www.sec.gov/Archives/edgar/data/0001747661/000121390021063014/ea151581-6k_colorstartech.htm https://www.sec.gov/Archives/edgar/data/0001747661/000121390... [2] https://www.sec.gov/Archives/edgar/data/0001747661/000121390021063917/ea151587-6k_colorstar.htm https://www.sec.gov/Archives/edgar/data/0001747661/000121390... [3] https://pcaobus.org/resources/auditorsearch/issuers/?issuerid=779229&issuercik=1747661 https://pcaobus.org/resources/auditorsearch/issuers/?issueri... [4] https://www.allianceaudit.com/ https://www.allianceaudit.com/ [5] https://pcaobus.org/resources/auditorsearch/firms/?sort=oldest&firmid=3487 https://pcaobus.org/resources/auditorsearch/firms/?sort=olde... [6] https://www.sec.gov/Archives/edgar/data/0001747661/000121390021050262/ea147949-424b5_colorstar.htm https://www.sec.gov/Archives/edgar/data/0001747661/000121390... [7] https://www.sec.gov/Archives/edgar/data/793628/000155335021000064/chnr_ex4z2p.htm https://www.sec.gov/Archives/edgar/data/793628/0001553350210... [8] https://www.linkedin.com/in/alecorudjev https://www.linkedin.com/in/alecorudjev
jameshart 5y ago
Pump and dump? Trying to become a memestock?
rexreed 5y ago
They needed something high profile to boost their stock and rope in more investors.
awb 5y ago
What’s crazy is that for $10-15k you can have a really professional looking website, instead it looks like they dropped about $2-5k for a half-built, broken looking one.
- ren_engineer 5y ago
  you can buy a Wordpress template and have some intern spend a few hours changing the text and have a professional looking website

by tyingq 5y ago

JumpCrisscross 5y ago

> it almost certainly some kind of scam They tried to privately place $10mm in November [1], though that was terminated a week later [2]. They announced a new auditor a few days later [3][4] who doesn’t appear to have been auditing any U.S. public companies prior to this July [5]. They’re also selling $20mm of shares as of September [6] via an Atlanta-based broker-dealer who appears to do these for Chinese penny stocks for 7 to 8% fees [7]. (Searching the firm on LinkedIn brings up D.C.-based general counsel [8], a guy in Miami Beach and a dude in Ghana.) All this suggests a pump and dump with possible laundering connections. [1] https://www.sec.gov/Archives/edgar/data/0001747661/000121390021063014/ea151581-6k_colorstartech.htm https://www.sec.gov/Archives/edgar/data/0001747661/000121390... [2] https://www.sec.gov/Archives/edgar/data/0001747661/000121390021063917/ea151587-6k_colorstar.htm https://www.sec.gov/Archives/edgar/data/0001747661/000121390... [3] https://pcaobus.org/resources/auditorsearch/issuers/?issuerid=779229&issuercik=1747661 https://pcaobus.org/resources/auditorsearch/issuers/?issueri... [4] https://www.allianceaudit.com/ https://www.allianceaudit.com/ [5] https://pcaobus.org/resources/auditorsearch/firms/?sort=oldest&firmid=3487 https://pcaobus.org/resources/auditorsearch/firms/?sort=olde... [6] https://www.sec.gov/Archives/edgar/data/0001747661/000121390021050262/ea147949-424b5_colorstar.htm https://www.sec.gov/Archives/edgar/data/0001747661/000121390... [7] https://www.sec.gov/Archives/edgar/data/793628/000155335021000064/chnr_ex4z2p.htm https://www.sec.gov/Archives/edgar/data/793628/0001553350210... [8] https://www.linkedin.com/in/alecorudjev https://www.linkedin.com/in/alecorudjev

jameshart 5y ago

Pump and dump? Trying to become a memestock?

rexreed 5y ago

They needed something high profile to boost their stock and rope in more investors.

awb 5y ago

What’s crazy is that for $10-15k you can have a really professional looking website, instead it looks like they dropped about $2-5k for a half-built, broken looking one.

ren_engineer 5y ago
you can buy a Wordpress template and have some intern spend a few hours changing the text and have a professional looking website