Fuse Science Inc (DROP)

[itlogic]

I see what you are saying. I don't know if that is what's happening, but it does make sense.

I honestly don't understand 100% of what you said, but in simple terms. They raise A/S, that covers conversions of previous warrants, which increases the O/S by as much as the increase in the A/S. Using your number, lets say they converted at .003. Once conversions are done, then they R/S. After which all those converted shares start to dump on the open market. All that selling typically brings the PPS down to that .003 offering price. However, the actual PPS will not be at .003 because of the split adjustment, but the value of your shares will still be .003 pre-split. So, the R/S is just window dressing so the PPS won't have all those zeros in front if it after the sell-off.

So, in saying they are dumping now simply means warrant holders are converting to common shares and increasing the O/S. The volume is low in spite of this because no transaction is being made on the open market. After the R/S, the volume should increase because all those new shares being created now will then hit the open market and show up in the volume.