What happens is that when there's bad, or not so g
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The reality is, more likely, that the investing community sees a stock with a top-heavy amount of issued shares, that hasn't yet turned a profit, with timing of upcoming revenues uncertain, and isn't much interested.
However you spin this, however the extra shares are used, whether buying another company or a reverse merger of some sort, the value of your holdings will most likely be decreased, at least for the short term. It's a little irksome that Mr Kay seems to be a bit put out by having to explain the whole thing.