Better to stay away from penny stock with billion issued shares. Most are loss making, quarter after quarter, year after year with negligible EPS.
They are specialized in fund raising exercise by issuing and selling shares to market via esos and private placement or rights issue.
They are not focused on generating profits from business operation.
They will use and 'misuse' the company fund to finance the quarterly losses, unprofitable business ventures, assets acquisition, penny stock speculation, etc.

Each time they issue and sell shares via esos and private placement, the total issued shares increase and dilute the EPS and minority shareholding.

Eventually when the company fund are almost used up or 'leaked out', they will resort to share consolidation exercise followed by rights issue with free warrant to raise more funds from shareholders causing huge losses to specially minority shareholders.

Look at sanichi which had undergone the exercise.

Stay out of these stocks and let the big boys fight it out themselves. This way, these companies directors will wake up to do real business to benefit shareholders.

Avoid companies that frequently ask shareholders to pay money to contribute to company fund. Good companies pay dividend to shareholders and not asking shareholders to dig pockets.

Stocks that have undertaken Share Consolidation exercise and/or rights issue with free warrants:

• VC, SANICHI, MTOUCHE, PASUKGB, LAMBO, PDZ
• TRIVE, DGB, MLAB, VINVEST (VIVOCOM), NETX, EDUSPEC, PUC
• SCOMI, ICON, IMPIANA, MTRONIC, VIZIONE, TIGER, KGROUP
• MMAG, HUBLINE,

Follow my earlier postings to avoid losses of hard earned money.

Good luck.