The reverse split does not affect the 1/3 rule or the raising of capital. However, the dramatic increase in the number of authorized shares allows them to raise more capital as the rolling 12 month window used for the 1/3 rule ages out the older placements.
This is the same trick sprague used to keep feeding his friends and family for many years, trying to hide an authorized share increase in the reverse split filing.
Solms doesn't have any staff left. No one in their right mind will come back to work for him. This is his method to keep the cash flowing in some form or another to his buddies. Even if he scheduled a conference call for the previous quarter to explain the lack of numbers and the decision to reverse split, no one should believe anything he says.
Being "wrong" has been extremely profitable.
