Posted On: 03/29/2014 10:58:22 AM
Post# of 16816
Why don't you email Mr. Dwyer and present your concerns. There are times when a R/S is good, and times when its bad, but none of us want to see BCAP being a diluter. That's simply not possible at present with the share structure maxed. What we saw yesterday was a bunch of hot money exit BCAP for reasons unknown. It presents a buying opportunity at lower prices than we've seen in 2 months. Maybe it'll go lower, maybe not, time will tell.
Reverse Splits:
Good R/S is part of an uplist process and a tidying up of the share structure. Then you'll see a proportionate decrease in O/S and A/S to raise the share price (market cap remains the same), and the company trades on a higher exchange. Example in BCAP's case: share price is $0.05 / share with a 1:30 R/S (of both O/S and A/S) taking the share price to $1.50 and an uplist to NASDAQ BX. That means the price is higher, but share structure is maxed.
This is a case study on the Organovo R/S + uplist:
http://www-rohan.sdsu.edu/~cba/news/story/9-1...a2SDBJ.pdf
Bad R/S's are where the O/S is reduced, but A/S remains the same. That leaves scope for dilution.
I don't have time now, but I'll share later what I found out about why the O/S increased 3 years ago.
Reverse Splits:
Good R/S is part of an uplist process and a tidying up of the share structure. Then you'll see a proportionate decrease in O/S and A/S to raise the share price (market cap remains the same), and the company trades on a higher exchange. Example in BCAP's case: share price is $0.05 / share with a 1:30 R/S (of both O/S and A/S) taking the share price to $1.50 and an uplist to NASDAQ BX. That means the price is higher, but share structure is maxed.
This is a case study on the Organovo R/S + uplist:
http://www-rohan.sdsu.edu/~cba/news/story/9-1...a2SDBJ.pdf
Bad R/S's are where the O/S is reduced, but A/S remains the same. That leaves scope for dilution.
I don't have time now, but I'll share later what I found out about why the O/S increased 3 years ago.
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