Blum Holdings Inc (BLMH)

[On2_addict]

The..math..behind why the Reverse split is disastrous..for..TRTC shareholders.

Say there were 500 Million common class c before split worth $100 million at your .20 price
And 40 million Class B shares convertible into 200 million common shares worth $40 million
Pre split 700 Million fully diluted shares worth $140 million.

After 1 for 10 split of common.

50 million outstanding worth same at $2 per share = $100 million
And 40 million unspilt class b shares convertible into 200 million common shares worth $400 million at $2 after split price.
Post split fully diluted now TRTC is worth $500 million????

No way! You need to then take your pre split fully diluted market cap of $140 million and divide it by the new post split outstanding share count of 250 million shares. $140 million divided by 250 million. This gives you a post split price of .56 per share to equal the same market cap as before.

Unspilt the .56 and you see that TRTC is now worth .056 per share just because of the Reverse Split's effect of not splitting preferred shares.

Thanks you and Britto helped me figure it all out. Now we all know where TRTC is headed.

Keep in mind that I believe that $2 is not the post split price they are looking for. I see it more likely that they do 1 for 20, or 1 for 50 which would make post split worth much less then a nickel a share. Now you all know why I am out. A reverse split would DEVASTATE your common shares value.