is...retired
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It is not new debt - it is refinancing some existing debt as stated in the 8K:
In an effort to facilitate the Company’s previously articulated recapitalization, non-core asset sales, as well as a conventional asset based lending solution, to reduce the exposure to remaining convertible debentures, on March 9, 2017, the Holder, the Company, and a third-party investor (the “Assignee Holder”) effectuated a two-part exchange with respect to a portion of the Restated Debenture in which the Holder assigned a portion of its interest in the Restated Debenture (the “Assigned Debt”) to the Assignee Holder pursuant to an Assignment and Assumption Agreement, dated as of March 9, 2017, and simultaneously therewith, the Company, all of its subsidiaries, and the Assignee Holder entered into an Exchange Agreement, dated as of March 9, 2017 (the “Exchange Agreement”), pursuant to which the Company issued to the Assignee Holder a 4.67% Convertible Promissory Note, dated as of March 9, 2017, in the aggregate principal amount of $550,000 (the “Exchange Note”) in exchange for the surrender by the Assignee Holder of the Assigned Debt. The Exchange Note has a maturity date of March 31, 2019, provides for the payment of interest in cash or in kind, is convertible into the Common Stock of the Company at the option of the Assignee Holder upon the terms set forth therein, is subordinated to the Senior Debt of the Company, and contains certain trading restrictions, as defined therein.
Reverse stock splits don't affect the number of authorized shares, but a forward stock split issues new stock from the company's authorized shares.
About Stock Splits
So, you see, an R/S is a way to make more room under the Authorized Share maximum. That is what is happening here - there have to be enough unallocated shares to account for any conversions, and a new conversion was just announced. They may pay it before the conversion, but there has to be room for the conversion, in case it goes that way.
Getting to Nasdaq is not the goal with this R/S. It is to allow for conversions, which cannot exceed the A/S. The O/S is being divided by 4, so there will be plenty of authorized shares available for conversions. We are essentially unaffected, though we will have fewer shares worth more.
Yes, it is a typo.
There is no such thing as a 4 for 1 REVERSE split.
It has to be a 1 for 4 reverse split because they could not exceed the AS, which is 500000000. A forward split would only be possible if the AS was increased by almost 4X, and that can't be done overnight. The RS was approved last year, and is being implemented by the end of this month. It is a good move, because it allows the O/S to grow without hitting the A/S. We benefit with a higher stock price.
Just the opposite.
It is 1 for 4, meaning you get 1 share for each 4 you currently own. Only applies to O/S, A/S is unaffected by a R/S. So O/S will be 25% of what it currently is, and we all will have 25% as many shares, but worth 4X more each.
I got 500K today at .024. Average is still below .019. 9 mil now. Still want 1 mil more, but will wait for a pullback. I want each .10 increment to be worth $1M. All the way to $1 and beyond, if it holds.
I do due diligence before I buy. That is the most important step.
I set a limit of losing 50% at some point before it makes money. If it loses 50% of what I paid, I dump it. Worst mistakes are holding stocks that are sinking, thinking they'll recover. Better to exit, wait for the bottom, and, if conditions warrant, get back in. You could set a lower loss level, but OTC can jump around quite a bit.
When it makes money, sell some to recover your investment. Keep doing that until you have your entire investment back, then use what remains to play with 'house money' to see where it goes.
Don't do ANYTHING without understanding why you are doing it. Based on DD, not on what people say - there is no way to know the difference between the truth and pure fiction.
A buyback would imply money to pay for shares. They would have to borrow to get money. They are already in debt. They would have to go further into debt to buy back shares. A buyback implies profit that needs to be returned to shareholders. We ain't close to that yet.
While an R/S doesn't affect the A/S, it does mean (the fewer) shares held by shareholders are worth more by whatever the ratio. But convertible debt usually is listed at a particular price, and if that price is not adjusted by the R/S ratio, it would be a very bad idea.
That is likely why the R/S is not yet implemented. It only makes sense when there are no more conversions in the pipeline. At that point, the R/S simply reduces the number of shares held and increases the price. If that price doesn't help toward getting relisted, even that may not make sense.
Or, you could say they bought it for under $1m, used it for 2+ years, with somewhere around $20m earnings, sold for $5m. Sounds like a pretty good move, to me, since they are using it to reduce convertible debt.
What happens when A/S is increased?
Generally the stock price drops, because the market cap doesn't change just because there are more shares authorized. So, authorizing more shares drops the stock price, and an R/S removes a percentage of shares and increases the price of each remaining share by that percentage.
Effect of increased A/S
As a director in a public company previously, I can tell you that we had strict rules on making public statements. What a receptionist says on a phone is not a public statement, it is just rambling chatter. They might leak what the common rumor is in the company at the time, but no one like a secretary would ever speak for a public company.
When a public company KNOWS when they are going to do their ER, the often make a SEC statement about it. If you don't see anything posted in a company's financial statements, there is no news. So that is the ONLY 'Horse's Mouth'. Stalk the SEC financials to get fresh news.
Not sure why you say that. A R/S doesn't affect market cap - it is still X shares times Y price, which doesn't change in an R/S.
If my million $.02 shares becomes 250K $.08 shares, I'm fine with that.
What on earth are you saying? They authorized more shares then immediately reduced total shares? Why would any company do that - it costs money to make such transactions?
I would take them, but still waiting for some sells to settle at etrade.
I, for one, do not understand what you are saying. Why on earth would shorters go to work with fewer shares available, and at a higher price? That would be very, very risky to them.
A reverse split removes shares and increases the value of each. 500000000 R/S to 1:4 would result in 125000000 shares at 4X the price. So, an RS is exactly what should be done once the dilution is complete. At current A/S, I don't see any possible way to get relisted without an R/S. And, I think it would be higher than 1:4, since that won't get the stock price to a listing level, unless they wait for an sp of $1. I don't think we will see that with the current A/S.
A turnaround generally means a company has improved. Stock price from $.25 to $.01 isn't a turnaround, it is a disaster.
Yes, for uplisting. Nas or nyse. By getting the stock to the $5 range, institutional buyers would be more interested. Under $5, not so much, but $3 would be enough to get relisted on NYSE.
So you think 10B shares is a good A/S? I was thinking a bit less. 1:100 would yield 5B, which still seems too high to me.
500M/250=2B, by the way, which seems to me like a reasonable number of authorized shares.
What are your thoughts about a reverse split after the dilution is complete? I'm thinking somewhere around 1:200, which is one reason my target is 10M shares. That would leave me with 50K shares worth at least $4 to enable relisting.
For those thinking reverse splits are bad, they are not. They are anti-dilutive, result is no net value change, but fewer shares authorized.
Due Diligence (DD) defined
Due Diligence
It means study a company before you buy its stock.
I suspect the change of timing is to get some news that cannot yet be announced into the earnings report later. We know they are working to sell another non-critical asset, but that deal may be pending and would want to be announced with earnings. That would be positive news, and would affect debt, which is the albatross for $ICLD
T-Trades - Definition.
DEFINITION of 'Form T'
A form that FINRA requires brokers to use for reporting equity trades executed outside of normal market hours. Form T trades occur during extended hours - before the market opens and after it closes. The objective of the Form T reports is to maintain market transparency and integrity.
BREAKING DOWN 'Form T'
Trading in extended hours enables investors to react quickly to events that typically occur outside regular market hours, such as earnings reports. However, liquidity may be constrained during such Form T trading, resulting in wide bid-ask spreads. Form T trading is especially suited for overseas investors, since they may conduct the bulk of their U.S. trading when their markets are open but U.S. markets are closed.
The growing popularity of electronic communication networks means that Form T trading is bound to continue increasing.
I'm not to 10M yet, but I don't do screenshots of my portfolio. NOR - do I have any reason to lie about it to a bunch of people I don't know.
I just feel that this is my one big shot to quit fooling around and park most of my money in good dividend stocks. If it gets to $0.10, I make my first $1M. 90% of my ICLD is in my 401K Rollover IRA - no taxes until I withdraw. Gotta love an IRA. That is all before tax dollars anyway, and has many company matches in it too. I'm retired now, but not quite self sufficient. That is my current goal.
8.5 million shares now...need 1.5 million more b4 I stop accumulating. Average is 0.18 now.
Wednesday - shorts beware!
100000 for $1650 is a boatload? I must have an ocean liner full.
Doubt .01, but if it gets below my average of 0.0175, I will buy more.
Like what you said, but not too keen on the yelling (caps lock).
What is funny to me is that I almost mirror your sentiment.
Laid off in my 60's, took early SS because no work for old guys in 2008. 401K was down by 50% before I took charge and rolled it into an IRA with Etrade. That was $59K at the time.
Now, over $600K not counting what I've taken out and I draw $1k/month for living expenses and one $50k chunk.
But 7m shares of ICLD may just change my life too. Own my home, just want a change of cars. I want the security of not having to count pennies. ever. If ICLD hits $1, as it did twice in 2016, I'm set. I think it can do it.
I do expect a R/S at some point, so it may not hit $1 before that. I will play that by ear.
Google it. That's what I did.
Once they are clear of the debt, an R/S makes sense. If they want to get to NYSE, they will need a price of at least $4. R/S would have to be healthy to get it that high, say 200:1. That's why I have so many shares now - I want plenty after the split is done, which eventually has to happen, but not before dilution is ended.
200:1 would take it from $.02 to $4. 250:1 would take it to $5. The higher it gets between now and that time, the smaller the split would have to be.
Once on NYSE, institutional investors will be more interested, most won't deal with stock under $5 or $10.
Yeah, that would be me. 7 mil now, and might make it to 10 mil if I can still average down from .0175. When it does bust thru, I hope to 'retire' from trading. All the money is from a huge dividend I got from $pip, so it's all house money for me.
Got 500K more at $.017...
I think there are multiple issues here:
Some that bought sub .0175 are taking profits.
Shorties, fearing earnings release uptick are getting the flock out. I would not want to be short at ER.
Longs are loading up.
The ER will tell a lot. Can't help but be good news, as the financial picture continues to improve.
With 6.5 m shares now ($0.0175 avg), I'm obviously a long. But, if it does manage to get back under $.0175, I'll pick up another 500k.
His statement is a little weak in my mind.
Shorts could just exit now before ex-dividend date, and reshort after. Hell, they could BUY after exiting the short position, get the dividend, then sell after ex-div and reshort. Only those not watching would have to pay the dividend.
The point is that his statement makes no sense, and I'm not even a 'shorter' of any stock.
I hope you get your $1 sp. I have 2 mil shares under $.05.
After the merger and RS, sp will be $4+, ticker will be ALT, and listed on NYSE. That is when it could see instructional buying, which should bouy sp. This is JUST LIKE a regular IPO, except we can go in as stockholders and ride it up or down.
Some people have alternate facts.