Apparently I was ill-advised by rushing to remove my own post that I put up yesterday. It was a reply to a good post by Gary. So by popular demand here it is again.
Quote:Part of the problem with all of this is due to the fact that the company has not articulated clearly why there was a need for a shareholders vote in the first place. Or let me just be blunt. They have not told us the real truth.
This is how it has been presented:
1) Vote in favour of the R/S. For now just write us a cheque, go ahead and sign it, no need to put in the amount. We will do that for you. But you know what? By the time we get to the end of the year we might decide to scrap the whole idea of a reverse split. Trust us, we are also shareholders.
2) A reverse split will increase the share price and it will make the company more attractive to institutional investors. You have no idea how many people will come knocking on the door.
3) Up-listing to Nasdaq will then be just around the corner.
Without going back too far and pointing out how the company could have gone on a travelling circus showcasing their bungling idiots act. Let's just go back one year and focus on the $5 million toxic loan. Let's even give them the benefit of the doubt. They had no choice, it was a matter of survival and that is the only reason why they signed such a bad deal.
A preamble acknowledging the above, followed with a credible explanation as to why they dragged their heels and let the share price tumble would have been much more palatable than their arrogant approach...trust us, look how qualified we are!
This should have been followed with the real truth:
1) The truth is that they underestimated how toxic the loan was going to be.
2) Time is of the essence. They cannot wait until the end of the year to effect a R/S. If they don't act asap, by the end of the year they will potentially be out of money, out of shares, or both.
Present the above with a specific R/S to the shareholders along with a business plan for the immediate future, then we can talk. The problem is the SOBs are just too arrogant and I doubt that they will ever admit that all they've shown us so far is how they bungled their way onto a circus act.
The following has a good basic explanation of reverse splits and many other security law articles.
https://www.securitieslawyer101.com/2015/reve...ock-split/
2
