$RITE and it's current overhang keeping it from getting back into bull mode

$RITE was one of the first #otcset to break it's long term ceiling but after a juicy 10x move from there, it's since fallen back to the old ceiling and has failed to hold it as the new floor. That's a critical element for these #otcset, that old ceiling has to become the new floor, and as of now $RITE has lost it as support. Clearly there is heavy overhang weighing it down, but that doesn't mean it's not still salvageable either. The company just has more to execute on.

The overhand is coming from:

*High-ratio Series C preferred + related rights/options (400,000 common per preferred share).

*6.9 million Series NMC preferred + matching warrants from the asset acquisition (~3.45B + 3.45B potential common).

*Remaining Series D warrants and other rights.

*A chunk of those warrants are currently out-of-the-money.

Most of it is optional, not mandatory. The company has no current obligation to issue beyond authorized shares.

The biggest single block (Series NMC) has a sinking-fund feature: the company can offer to buy the preferred back in cash (price accretes 5% from a $25.40 floor). Holders choose cash or conversion. If operations, JVs, or non-dilutive capital fund those offers and holders take cash, that block never hits the common float. Deep OTM warrants can simply expire unused. The company has already cancelled some preferred via its reclamation program when contracts allowed. Restricted shares and a voting standstill on a large holder also limit immediate dumping.

If management keeps prioritizing cash redemptions and debt over new equity, lets OTM paper lapse, and only converts what holders actually demand, a large majority of the 14B theoretical number never becomes outstanding common. That is the non-destructive path. It requires real cash generation or asset progress—otherwise conversions will keep dripping in.

Not a guarantee. Just the mechanics that exist in the filings. Always check the latest 10-Q/10-K yourself.

$RITE needs to turn the tailings assets into actual cash (production, JV, or sale) so it can stop paying bills with paper. Use that cash to redeem the big NMC preferred block through the sinking fund instead of letting it convert. Pause new preferred/rights for consultants, keep reclaiming old paper where contracts allow, and avoid increasing authorized shares unless holders force it.

If they generate real money and retire the convertibles with cash rather than common stock, the structure stays manageable. If they keep issuing and converting to survive, it turns toxic. That’s the whole game.

So far the company has done a number of things which indicate they're trying operate more cleanly and protect the share structure, rather than just printing paper.

*Went fully reporting — filed Form 10, responded to multiple rounds of SEC comments, and now files 10-Ks and 10-Qs with audited (or reviewed) financials instead of staying a dark Pink sheet.

*Transfer agent verified the outstanding share count directly with OTC Markets, and the company has kept its OTC profile current/verified.

*Earned Penny Stock Exempt status from OTC Markets (based on operations history and asset classification), which removes some trading friction.

*Ran a share-reclamation program that pulled back improperly issued or unsupported paper from prior management. They’ve cancelled or put in process hundreds of millions of common-equivalent shares, including a specific 45 Series C preferred cancellation that removed 18 million potential common shares.

*Put restrictions on a lot of the new paper — many preferred conversions and advisor shares carry Rule 144 holding periods and volume limits instead of hitting the free-trading float immediately.

*Negotiated a standstill and voting cap (45%) with the large holder who took over the 6.9 million Series NMC preferred + warrants. The transfer itself issued no new securities.

*Publicly stated a preference for debt and delayed a bigger equity raise (Reg A) until the stock price better reflects claimed asset value, rather than dumping more cheap paper right away.

*Used some cash/consultant money to exercise rights instead of just granting free stock, and management has exercised its own options for preferred rather than only taking free common.

*Restated financials when required (including an asset write-down) instead of leaving inflated numbers on the books.

These are real process and governance steps. They don’t guarantee success or that dilution stops, but they are the opposite of the typical “print and hide” OTC pattern. The company is at least documenting, restricting, reclaiming, and answering to the SEC rather than ignoring the share count.

The fact that the price has at least temporarily fallen back below the old ceiling is a sign that this overhang is very real and the market is pricing it in. That doesn't mean it's insurmountable and relatively speaking, the current pps is still only roughly a double away from testing that ceiling level and getting back on the right side of it. The sign from the price action that this is falling into death spiral territory would be testing the long term lows with spiking volume, which would be accompanied by massive spikes in dilution. As disappointing as the current dip is, it's no where near that point and the company continues to seemingly act in good faith to try to do this process cleanly and protect the structure. That doesn't ensure it will work, however there absolutely is a potential path forward where they are able to accomplish this and the #otcset pattern would retrigger and the pps would go on to test the 2025 highs and beyond.

For better or worse, this is where I see the current situation. The price being below the ceiling again is the market's way of saying 'there's still ample risk here'. That being said, if the company can execute and continue to manage the share structure like they've been doing, this will reverse get right back to where it was in the second half of 2025. I know many are holding from higher levels now but this dip and should it go lower offers an intriguing level to grab discounted tickets to the show. I'm very skeptical this is over, based on the overall price action still being very much in a long term trend of higher highs and higher lows and based on the companies actions to date. They just have a lot more work to do, and that's the gamble now.