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Several months ago, the KBLB share count was at 854,410,000. Today it is at 897,551,753. There has been a 5.01% share dilution in just a few months. How much more dilution are we getting before they sell enough shares to pay off their loan at the end of the year?
This has to be the biggest joke of a PR yet!
Well, I guess this from the event page,
This is what I worry about...
That's a little relieving. But the S1 says
Can someone check my math. I looked more at the S1 offering and I'm a little more concerned now than I was before. Actually, a lot more concerned.
So here are some basic stats using the current share count and $0.17 for the price per share. I'm using 0.17 because it's around where the price has been hovering lately.
Current Shares Current Price
854,410,000 $0.1700
Split Ratio 1:X 10 20 30 40 50 100
New Total Shares 85,441,000 42,720,500 28,480,333 21,360,250 17,088,200 8,544,100
After Offering Sale at $10 Million of Shares Sold at $5.25 (1.905 million shares)
% Share Dilution 2.23% 4.46% 6.69% 8.92% 11.15% 22.29%
New Total Shares 87,345,762 44,625,262 30,385,095 23,265,012 18,992,962 10,448,862
WebSlinger, thank you for the example. I do want to look into it more, even if just for my own curiosity. This could be an example of the 10-day requirement not being enforced by FINRA or the SEC, and I very well may be wrong. However, there were several filings prior to the actual split indicating the approval and intent of a reverse split.
https://www.sec.gov/Archives/edgar/data/844856/000157104916013254/t1600789_8k.htm
The filing above was filed on March 21st, 2016 (10 days before the r/s effective date), and it states
On March 21, 2016, Vapor Corp. (the “Company”) held a special meeting (the “Special Meeting”) of its stockholders. At the Special Meeting, the stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) to effect a reverse stock split of the Company’s common stock at a ratio between 1-for-10,000 and 1-for-20,000, such ratio to be determined by the board of directors of the Company (the “Board”) (the “Reverse Stock Split”).
The letter you quoted from the SEC was dated Feb 1st, not the 4th. To which they responded 1 day later with
After reviewing your comment we see that we included the following statement in the Information Statement regarding the votes obtained for the corporate actions at issue, “633,037,254 votes (which includes 2 shares of Preferred Stock, since the Preferred Stock votes together with the Common Stock and each share of Preferred Stock is entitled to 200,000,000 votes) or 50.5% of the voting power outstanding on such date, approved the Reverse Split, the Reduced Voting Power and the filing of the Amendment. Series A Preferred Stockholders holding 2 shares of Common Stock or 100% of the Series A Preferred Stock outstanding on such date, also approved the Reduced Voting Power and the filing of the Amendment.” 633,037,254 represented 50.5% of the voting power outstanding on the Record Date. As discussed during the Conversation, the Information Statement disclosed that there were 1,254,410,001 votes outstanding on the Record Date and that Mr. Thompson was only one of the shareholders who provided consent for the corporate actions at issue.
Dear Mr. Rice:
We have completed our review of your filing.
"First, making the stock pop and enacting the r/s immediately isn't an option."
which is why i didnt use the word immediate...
"The effective date of a r/s cannot be less than 10 days after the effective date is announced."
well there are exceptions to every rule...