That is entirely a possibility now that a serious
Post# of 75002
That being said, I have to repeat myself as I did to a friend of mine a few weeks ago who's scared shitless of an RS.
There are bad business RS's and good business RS's. Some who've dabbled willy-nilly in super sub penny plays, like playing scratch offs, are mostly familiar with the bad business variety.
The good business variety is usually only executed to adjust the share price for compliance with big board minimum requirements. When adequate financing is available, the split IS NOT about paying salaries and all other costs associated with continuation of the business (with toxic dilution selling shares with sinking pps).
It's about taking fantastic products/services that represent an awesome growth investment opportunity to the big boards where the big money prefers to hang out. When a company is kicking ass, the stock value continues to trend upward post RS, and usually at an even faster rate due to the big investors who will now put the company on their "eligible investment" lists. Later on you'll see FS's to re-adjust the share structure/PPS so as to keep it in an optimal range for liquidity. The more attractive price range invites more trading activity.
That kind of investment capital is a continuation of the sort that this company just had the good fortune to receive. The kind of capital that let's you take your marketing efforts farther, and even more importantly, take it there faster so you can beat the competition to the punch.
Paying salaries and all other costs associated with continuation of the business with shares of cheap stock leads to dilution. All companies without massive stockpiles of cash will typically generate capital in this way. The critical determiner is how soon the company can generate substantial revenues and, above all, attract serious non toxic capital investors
RS's executed by "sinking or floundering" companies with little to no revenues or access to non toxic capital just lead to more dilution and the PPS continues to slide in a "death spiral". Fortunately, FINRA now limits the use of RS's for long term "free rides" at the expense of investors. For years it was basically a scam orchestrated by freeloaders who pretended to be launching a business but never really did much but sell stock and spread BS.
This company is, as I've always preached, a "diamond in the rough" in the land of start ups. One that is real with huge growth potential, and as time progresses the potential is going kinetic. Strong Buy is all I've seen on this. Waiting a couple to a few years to see it launching toward 100's of times initial investment makes the time of sideways price levels meaningless as long as those funds had no better place to be. Only a very few investors could've maybe "flipped" their way to more profits with their money than they'll have been able to make long term on Rocky Mountain High Brands. MAYBE, but I doubt it! RMHB Long and Strong!! $$$$