Have seen this many times before. Could certainly walk through the nuances if you are ever interested.

Hope you are well!

Another thing to note is that often, OTCBB companies are easily able to raise money based solely upon a short description of that they’re hoping to do. It’s not uncommon to see one OTCBB-listed company with no ongoing operating business get bought out by another company (buying a public listing, basically) only to change the name of the combined company and then trumpet a bunch of buzzword-filled press releases about how they’re attacking some “large, growing market” (like alternative fuels, vague technology, et cetera). It’s often pump-and-dump penny stock manipulation, but occasionally there are real businesses that are birthed from the depths of the OTCBB. One example (though it’s not without controversy) is ZAP Electric, which makes and sells electric vehicles and does more than $50M in annual revenue.
I actually think that early-stage startups ought to tap the public markets (like OTCBB/Pink Sheets) more often, because there are quite a few investors willing to take risks and pay high valuations on speculative ventures. Often the cost of compliance is low because companies listed on these exchanges don’t have to pay for the costly independent audits that bigger publicly listed companies are required to have prepared each reporting period.
Is this particular investment likely very high-risk? It looks like it. But is their financing strategy clever? Absolutely.