All American Pet Company Inc (AAPT)

[Leirum]

If they want to stay listed they have to do the following:

1.) Getting en current with their filings and then
2.) Reverse-Split as based on the new rules a stock Price should not be below $ 0.010.

In the past a R/S was deadly, but under the new rule a R/S should actually be very positive.

Why:

In the past the companies who made an R/S later on started to dilute again . Now, if the rule says: Minimum bid Price test 0f 0.01 will remove companies that are most likely to be the subject of dilutive stock fraud shemes and Promotion.

What would this mean for AAPT.

Lets assume they have 1.5 Billion shs outstanding and the stockprice is 0.0015
To lift it clearly away from the min.bid of 0.010 the Company could decide for a R/S 15 to 1 which would give new 100 Mio shs outstanding and the stock would then be $ 0.0225

With the old O/S the capitalisation is: $ 2.25 Mio
With the new O/S the capitalsiation is: $ 2.25 Mio

So for you nothing changes: Less Shares but the same value.
But for the Company it would put in a discipline when out for financing beause if you start to dilute again heavily, then of course you fall below the Benchmark and this is it.

Based on what I wrote in my previous Email, of course the stock would become almost illiquide and Little buying would lift the stock. Why:

GRID new roughly 15 Mio shs
Restricted roughly 45 Mio shs
Real Float roughly 40 Mio shs.

I would predict the stock would go up if it happens.

Now to the question: How to get financed as the Company certainly Needs Money. Well here one has plenty of other possibilities among others through Convertible Notes with a scalled up conversion Prices calculated on a Basis, that the Company has not much room for maneuvre otherwise risking always the 0.01 Level.

What should Change: Change in the Management for sure as those funding the Company should put their People on board. Will it happen? I do not know, but what I do know, if the Company is not getting their act together, then their Grid is a worthless Piece of paper.

Then you know as I know, a new Group in control of the Company could go out and declare chapter 11, restructure and come out again, clean, lean and debt free.