Posted On: 03/02/2014 9:32:22 PM
Post# of 56324
Simply put..
A Reverse Split would remove share from the A/S O/S and Shareholders .. reducing
the number by the ratio.. a 1 to 10 for our share structure of 3.5 Billion would reduce it to 350M,Share Holders would have 1/10 of their current shares. Ofcourse the stock price would increase by this ratio as well. If it closed at say .25, after the execution of the Reverse Split the stock price would be $2.50. With less shares available the Market Cap would also be reduced allowing for Revenues to Increase the PPS easier. This is usually viewed as a negative to current shareholders because of the loss of shares.
A Stock Buy Back essentially reacts the same way except the PPS is not automatically Adjusted and the Shareholder does not give up acquired shares. The PPS would raise dramatically on this action and the Shareholder would instantly see a very nice increase in holdings. This action is viewed as a very positive event and suggests Strength of a Company and would attract many new investors.
Both vehicles could be used to setup for uplisting to a higher exchange but obviously the Share
Buy Back is the more rewarding event to the Shareholder and this is the action I believe Bill
will use because he has always looked at the best interests of us as well as his company.
If I've miss stated something here I apologize in advance and won't take it personal if corrected.
A Reverse Split would remove share from the A/S O/S and Shareholders .. reducing
the number by the ratio.. a 1 to 10 for our share structure of 3.5 Billion would reduce it to 350M,Share Holders would have 1/10 of their current shares. Ofcourse the stock price would increase by this ratio as well. If it closed at say .25, after the execution of the Reverse Split the stock price would be $2.50. With less shares available the Market Cap would also be reduced allowing for Revenues to Increase the PPS easier. This is usually viewed as a negative to current shareholders because of the loss of shares.
A Stock Buy Back essentially reacts the same way except the PPS is not automatically Adjusted and the Shareholder does not give up acquired shares. The PPS would raise dramatically on this action and the Shareholder would instantly see a very nice increase in holdings. This action is viewed as a very positive event and suggests Strength of a Company and would attract many new investors.
Both vehicles could be used to setup for uplisting to a higher exchange but obviously the Share
Buy Back is the more rewarding event to the Shareholder and this is the action I believe Bill
will use because he has always looked at the best interests of us as well as his company.
If I've miss stated something here I apologize in advance and won't take it personal if corrected.
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