Red Giant Entertainment, Inc. (fka REDG)

[Stocktacular]

Technically the common stock will be worth ten cents when the reverse split stock price first hits. If the stock price holds at that price or goes up they will be able to get financing and services easier without massive dilution of the stock. The chances of the stock rising would also be much better especially if they are beginning to work toward being a profitable Company. Negative stockholder views currently on how the post split preferred shares can be converted to 4 billion common shares can possibly quickly drive the stock down post split to much lower levels since it can possibly lead to a massive dilution of the common stock. I think REDG should have no more than 200 million potential common shares including the convertible preferred post split and they should rethink the reverse split structure. The stock would then have a better chance to hold at ten cents and rise. If the post split price quickly drops to say one cent most of the balance of our investments would be pretty much gone and REDG would have to dilute the stock more and more to get any financing.