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Posted On: 01/23/2019 5:02:02 PM
Post# of 22463
There is no chat about reverse split. It’s just a bunch of irrational investors spinning themselves into a tizzy over a simple conversation. An investor asked me to give my thoughts on reverse split probability and at what ratio/price.
I gave them my opinion. If I were Steve and royalties were rolling in with solid future revenue flow, say $100 million per year projected, then when share price rose to around $0.50 or higher, I would execute a reverse split, 10/1. Reverse splits do not impact the value of our investment. We own less shares at a higher share price.
Under the circumstance that I described, it’s a solid move. It gives us as investors and opportunity for more liquidity by opening up trading to a better exchange, subsequently mutual funds and institutional investors. We need liquidity in order to have share price rise. In order to have liquidity, we need more solid investors, not this continued MM action we have on the OTC.
I gave them my opinion. If I were Steve and royalties were rolling in with solid future revenue flow, say $100 million per year projected, then when share price rose to around $0.50 or higher, I would execute a reverse split, 10/1. Reverse splits do not impact the value of our investment. We own less shares at a higher share price.
Under the circumstance that I described, it’s a solid move. It gives us as investors and opportunity for more liquidity by opening up trading to a better exchange, subsequently mutual funds and institutional investors. We need liquidity in order to have share price rise. In order to have liquidity, we need more solid investors, not this continued MM action we have on the OTC.
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