While reading Gamasutra today, I came across the following little tidbit in one of their articles on Infinium Labs SEC filing regarding a request to change their corporate name. It would appear that in addition to changing the companies name, Infinium is also seeking shareholder approval to create and sell an additional 600 million shares of stock to further fund the company. The following statement from Infinium's filing is quoted in the Gamasutra article;
"Our Board of Directors has unanimously approved, subject to stockholder approval, an amendment to our Certificate of Incorporation to increase the number of authorized shares of Common Stock from 600,000,000 to 1,200,000,000... The Board believes that the increase in authorized common shares would provide the Company greater flexibility with respect to the Company's capital structure for such purposes as additional equity financing, and stock based acquisitions." - Infinium SEC filing as noted by Gamasutra
Now call me crazy, but it would seem pretty convenient to change your name just before you offer a huge amount of stock to the public when your current corporate name is pretty much worthless and scandal ridden. It's so much easier to slap a new name on this clunker and see how many more people you can sucker in.
Sure, most investors with knowledge of the industry or a good broker will know the real deal, but how many people will just hear that there's a company called Phantom Entertainment that is trying to enter the "hot" video game market with a new game console, do a lookup and see a shiny new website that Infinium will probably put up that promises the moon, not see any negative reports about "Phantom Entertainment" and invest? Hell, it wouldn't even surprise me if those scam stock spam e-mails suddenly started pushing Phantom Entertainment. It's only speculation on my part for certain, and I'll be the first to admit I don't know much about the intricacies of investing, but that seems like a pretty plausible scenario to me.
Quite comically enough, a whois search for the domain name "phantomentertainment.com" shows that it is indeed owned by a George Townsend of Infinium Labs with the oh so professional contact e-mail of "email@example.com". We bet it is, George, we bet it is.