The approximately nine million post split common shares can grow to 4 billion common shares due to the convertible preferred stock. With over 19 billion authorized common shares it seems they are setting up the post split Company as if they are expecting massive stock dilution. Massive dilution and a post split falling stock price do seem likely to happen like you are saying with the current toxic debt,a lawsuit against them,very little revenue, no profits and current non Board stockholder alienation as the Board Members are protected with potentially 4 billion common shares via their post split convertible preferred shares while non Board stockholders lost their shares 1000 to one and have no protections. The ten cent post split share price could and in all probability will drop quickly and wipe out most of the remaining investment dollars of non Board members but not Board Members who will be able to purchase 4 billion common shares via their preferred stock. SOUNDS LIKE AN UNFAIR TRANSFER OF WEALTH FROM NON BOARD MEMBER STOCKHOLDERS TO BOARD MEMBER STOCKHOLDERS.
Benny and the Board have to rethink the reverse split and get the total amount of potential common shares down to less than 200,000,000 including convertible preferred stock. I think they then can hold the 10 cent post split price if they also lay out some great plans for the Company. The stock would even have a chance to rise and they could be on their way to being a credible Company and not a very shaky and very questionable Micro Penny Stock. They would also show they cared about their loyal non Board shareholders and their investment in the Company.
They really should talk to a Management Consulting firm before they go ahead with their current "Dilution is the Solution" restructuring debacle which is just more of the same of what they have done in the past.
Lets hope Benny and the Board do "THE RIGHT THING" they still have a chance to get this right and make things right and keep their good reputations. A good reputation is obviously priceless to have and something one always wants to try to maintain.
