In Sky Century's Denial, the Real Story Is the $0.05 Convertible

Sky Century Investment Inc. (OTCQB: SKYI) has an answer for anyone who suspected the company of running a promotional campaign on its own stock, and the answer, delivered in a formal response to OTC Markets Group this month, is roughly: we did not, we have not authorized anyone to do it for us, we do not know who paid for it, and also here is a list of the shares we handed out at five cents apiece in the surrounding weeks.

Something like a promotional campaign did happen. OTC Markets, which runs the trading platforms where this Nevada company's stock changes hands, monitors OTC securities for paid promotion and, since 2018, flags stocks it believes are being touted. It formally asked Sky Century to respond. The company's answer says it "does not conduct or provide promotional campaigns for its securities" and has not authorized any third party to run one; it says it was not aware of "the complete source, distribution network, or compensation arrangements" behind the materials, cannot determine whether they affected trading, and would prefer investors rely on its SEC filings and ignore unsanctioned third-party material. Its officers and directors, it certifies, neither bought nor sold the stock in the preceding ninety days.

That is the legally prudent way for any OTC company to answer such a letter. It is also the least useful part of the disclosure. The useful part is the geometry of share issuance that the company was required to attach to its denial — and the price that keeps appearing inside it. The price is $0.05.

What the "request" is. The press release title says "pursuant to OTC Markets' request," which sounds bureaucratic and is. The market operator reviews for promotional activity — anonymous paid promotion, newsletter touting — places a stock-promotion icon on the security's quote page, and asks the issuer to answer a set of items in public, including one about issuances of stock at a discount to market price. The issuer's job is to put on the record what it did and did not do around the pump. That becomes a public, citable statement, useful to everyone except the shareholders, who learn mainly that the stock in the inbox is the subject of an active promotional campaign.

The company in question. Sky Century began as Band Rep Management, a Nevada entity incorporated in 2012 and renamed in 2015. In 2020 it bought a cannabis-news app, which it sold in May 2026. Today it sells RSS feeds and leases servers. For the nine months through May 31, 2026, it booked $94,820 of revenue, lost $26,973, sat on an accumulated deficit of $949,664, and held $264 in cash — $264 total. Auditors issue going-concern findings, and the company's own filings note it is treated as a shell company for Rule 144 purposes. This is not, by its own description, a business; it is a financing vehicle. For a company this size, a promotional campaign is not an event in the business. It is the funding model.

The cap-table chronology, all from Sky Century's own filings and releases:

• January 30, 2026: a 1-for-100 reverse split cuts ~223.5 million shares to 2,235,486.
• Through the spring, the stock sits near $0.21 on minimal volume.
• May 20: a release announces "expansion plans" and a pivot toward "emerging digital trends," along with the engagement of Interactive Offers, an investor relations and digital communications firm. The stock runs to ~$0.70.
• July 1: the board approves 3,000,000 restricted shares to president and CEO Nataliia Petranetska as bonus compensation, at $0.05 each.
• July 9: a written services agreement with Interactive Offers for marketing and investor communications.
• July 14: shares outstanding now 6,935,477 — the CEO's bonus took the count from 3.9 million to 6.9 million in six weeks.
• July 15: the company says it first became aware of third-party promotional materials.
• August 7: 563,880 restricted shares to Fydel LLC to convert $28,194 of a promissory note.

The thread that ties it together. The 10-Q discloses that on December 20, 2025, Petranetska assigned $100,000 of her own loan to the company — working capital she had advanced — to a non-related third party, "including the associated conversion right at a fixed price of $0.05 per share." The August response identifies the noteholder as Fydel LLC, the note dated December 20, 2025, on the same $100,000 of principal. The same date, the same amount, the same conversion price: it is the same paper. On August 7, in the same week the company was publicly responding to the inquiry, Fydel converted $25,000 of principal plus $3,194 of accrued interest into 563,880 restricted shares at that nickel price — with the stock trading near $0.11 to $0.14, a conversion for less than half of the market price. Another $75,000 of the note remains outstanding, worth 1.5 million more shares at the same price if it converts.

The shares are restricted under Rule 144, so the holder cannot dump them the next morning; the exit door takes time to open. But that is not the point. The point is that a holder sitting on up to two million shares at $0.05 needs retail demand to arrive. A promotional campaign is what manufactures demand in a stock this size.

The sentence to read twice. "Some instruments may have conversion prices differing from the market price at the time of conversion" — that is the company's own hedge. It says it has "not identified any issuance specifically structured to provide a discount to market price." Technically plausible: the number was fixed in December, when the market price was lower, so the $0.05 right is not, in the company's telling, "structured" as a discount; it is just a number that differs from market by more than half. That is a statement about contract drafting. The economic effect on existing shareholders is identical either way — new shares created well below the prevailing price, into a market being promoted. The phrase exists to keep the company on the right side of a regulatory classification; it does not change the dilution.

Who gets paid. No insider sold, which the company certifies; the bonus and the conversions are restricted, so there was nothing to sell yet. Nobody at Sky Century apparently wrote the tout. But here is what the company itself discloses, based on information from OTC Markets: its hired communications firm, Interactive Offers, "separately engaged and compensated Equiscreen LLC" in connection with the promotional materials, and Sky Century says it was not a party to that arrangement. So the money walked from the company's marketing budget to a firm whose entire function is to talk about the company, and then to a promoter the firm hired. The denial is made literally true by the distance between the two contracts — two hops. Whether that distance is deniability or happenstance, the promoted bid exists all the same.

What the price says. The stock was dead in the spring, near $0.21 on no volume. The digital-trends pivot in May ran it to about $0.70. In July, the promotional month, roughly 609,000 shares changed hands — the heaviest monthly volume in at least a year, more than double the next-busiest month — and the price still fell from about $0.49 to $0.20. In August it has slid to around $0.11 to $0.14. A campaign that produces volume but not a higher price is not a narrative. It is liquidity for whoever is on the other side of it.

For a reader deciding whether the promotional emails are a reason to buy SKYI, the whole case sits in that response to OTC Markets. The materials describe a company that sold about $95,000 of RSS feeds and server time in nine months, holds $264 in cash, carries a $343,000 working-capital deficit, is funded by its own CEO, and — through its own hand — tells you the materials are unauthorized third-party copy you should disregard. The response is the one document in this stock's recent history that is worth reading, because it is the one that names the pump and prices the paper. It does not tell you whether the CEO authorized the promotion, and it does not need to. Whatever anyone's state of mind, the structure it discloses is the structure a buyer would be buying into: promotion you are told to ignore, and a $0.05 convertible waiting on the other side of your bid.