NSRS CEO Harry Lappa turns $306,196 into $200,000,000! A 65,000% return! | Stock Haven | Stock Chat Room | Penny Stocks | Options |Stock Haven | Stock Chat Room | Penny Stocks | Options |

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NSRS CEO Harry Lappa turns $306,196 into $200,000,000! A 65,000% return!

Oh the lure of being a penny stock CEO. How nice it must be to turn $306,196 into over $200,000,000. Yes, you read that right, 200 MILLION DOLLARS! Nothing like a cool 65,217% gain to file on your tax returns. But that’s just another day in the life of North Springs Resources (NSRS) President and CEO Harry Lappa.

NSRS filed their S-1 to become a publicly traded company on June 1, 2010. Coincidentally enough, AMWI filed their S-1 a couple weeks later, but we digress. At the time, the company was called Aurum Resources Corporation and the only employee was then CEO Danil Shpeyzer. Shpeyzer registered 2,500,000 shares at a par value of $0.001 for gross proceeds of $2,500.

Then, as disclosed in an 8K filed with S.E.C. on April 12, 2011, Harry Lappa took over the reigns at Aurum Resources:

On March 15, 2011, Harry Lappa acquired control of two million five hundred thousand (2,500,000) shares of the Company’s issued and outstanding common stock, representing approximately 72.05% of the Company’s total issued and outstanding common stock, from Danil Shpeyzer in accordance with a stock purchase agreement between Mr. Shpeyzer and Mr. Lappa (the ’Stock Purchase Agreement’). ’Pursuant to the Stock Purchase Agreement, Mr. Lappa paid an aggregate purchase price of three hundred and six thousand one hundred and ninety six dollars and thirty four cents ($306,196.34) to Mr. Shpeyzer in exchange for the shares.

While we find it odd that Mr. Lappa would pay $306,196 for shares Mr. Shpeyzer only paid $2,500 for, that’s not our main focus (not right now anyway). Our main focus is that Harry Lappa, after acquiring these shares, is now the company’s President, Chief Executive Officer, Chief Financial Officer, Treasurer, and Secretary. With his 2,500,000 shares in hand, Harry got to work.

His first order of business was changing the name of the company from Aurum Resources Corp to North Springs Resources Corp. In addition, as this 8K filed on July 21, 2011 shows, Harry did some minor tweaking of the share structure. Not only did he increase the number of authorized shares to 450,000,000, but he also enacted a forward split of the companies shares (which remember he owns 72.05% of):

On June 16, 2011, Board of Directors of the Company authorized a forward split (the Forward Split) of its issued and outstanding common shares, whereby every one (1) old share of common stock will be exchanged for one hundred (100) new shares of the Company’s common stock. As a result, the issued and outstanding shares of common stock increased from 3,470,000 prior to the forward split to 347,000,000 following the forward split.

The first thing we notice is the extra “s” in “Board of Directors,” as it should just read, “Board of Director.” After all, Mr. Lappa is the only employee of NSRS. From what we could tell there aren’t any board of directors, just him. More importantly though is what this forward split did for Harry Lappa’s shares. Remember the 2,500,000 he acquired back on March 15, 2011? After the 100-1 forward split they turned into 250,000,000 shares! Don’t worry, the story gets better…

On August 8, 2011 Harry Lappa did some more fine tuning to the NSRS share structure. As if increasing the authorized shares to 450,000,000 back in July wasn’t enough, our boy Harry increased it to 750,000,000 for good measure. Why did he do another increase you ask? So he could do another forward split and own even more shares of course, DUH!

On August 3, 2011, the Board of Directors of the Company authorized a forward split (the Forward Split) of its issued and authorized common shares, whereby every one (1) old share of common stock will be exchanged for two (2) new shares of the Company’s common stock.

Again with the board of directors, kind of funny really. The least he could have done is put it in parentheses, like “the Board of Director(s).” Anyways, the real story here is what this forward split did for Mr. Lappa’s shares, all 250,000,000 of them. Well, as if he was impersonating Harry Potter, Harry Lappa’s 250,000,000 shares magically became 500,000,000 after this stroke of corporate genius.

Harry Lappa’s original investment of $306,196 for 2,500,000 shares of NSRS is now valued at $200,000,000 with NSRS trading around $0.40 and Mr. Lappa owning 500,000,000 shares! This is incredible! Now maybe we know why he paid so much money back in March for such a small amount of shares. Maybe he knew his shares would be worth alot more later on? What did Mr. Lappa know at the time of his opportune investment? We can’t possibly know for sure. But what we do know is that in less than a years time, Mr. Lappa’s stake in NSRS has returned him over 65,000%!

Can NSRS keep rising? Of course it can. Has Harry Lappa sold any of his shares? There’s no way of knowing. We do know one thing though – if it walks like a duck, quacks like a duck, smells like a duck, and files S.E.C. filings like a duck… then gosh darnit it’s probably a duck! So make your money while you can and be sure you’re selling shares on the way up because you never know when those fake 1,000,000 share bids thru WDCO might duck out icon wink NSRS CEO Harry Lappa turns $306,196 into $200,000,000! A 65,000% return!

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