Connexus Corporation (CNXS)

[wiseguide]

Not good news for current stockholders.

The current shares were reduced in a 1:1,000 reverse. If the authorized shares were also reduced by the same ratio, it would have the effect of increasing the trading price, but not affecting the overall ownership of the current shareholders.

HOWEVER, the authorized shares were increased from 950 Million to 10 Billion, greater than 10X increase while reducing the shareholders by a factor of 1,000. (For an effective negative factor of over 10,000)

Under the old capitalization, the common stock holders had approximately 571 Million issued out of 950 Million authorized or approximately 60% of the authorized. With the reverse the current common stock holders will own 571,082 shares out of 10 BILLION authorized or 0.0057% of the authorized.

Prices move based upon supply and demand. How can a price increase when the demand is met with unlimited supply?