I want to point something out to make it clear. A reverse split is not always a bad thing and not my fundamental worry. I just recently went through a 4/1 RS on INO and it has panned out very well. The intention for the RS for that stock was to move it off the OTC markets and get it on NASDAQ where all the institutional investors that had already bought into it, wanted it. So get it out of your head that an RS is a bad thing. An RS for BLTA will pan out to be a great thing when it happens because it will make it viable to probably go from OTC to the NYSE opening the doors to were most investors feel comfortable now investing thus driving up the price of a less dilluted stock if the financials support it. (which based off what the possibilities for BLTA are, should be very well)
My issue is with dilution. When you add 1 Billion shares to a stock and the price stays the same you can almost compare it to inflation of a currency. My request for a plan on how BLTA is planning to handle this is the equivalent to asking Ronald Regan explain to all off us in the 80's how he was going to fix inflation.
You have to all understand that it's all fine and dandy that the management portion of the shares can't be sold, but Private Placement shares can be, once off restriction. And I highly doubt the new shares are for management, it's to be sold for fund raising purposes. (Or at least I hope that's what they are for to get the doors open) Alot of PP shares are coming off restriction and will continuosly do so. There is no real need for PP holders to be long on BLTA. They double thier money and can purchase even more PP, close to double the amount they originally held, and do it again in 6 months....it's a beautiful play on this stock. All while non PP shares get dilluted. At some point, someone respectable with a strong following will analyze this company down to the very last pubic hair and based off thier assesment will drive the price either up or down. At this level of dillution, there's only one direction the price can go if it gained any traction. So yeah, dillution is a major thing to consider when investing in this stock.
So if your plan is to sell this stock on the OTC at a profit, your ticking time bomb is an article that breaks the fundamentals down. So start making noise about these guys creating shares out of thin air until they stop or explain how they plan to handle it. GLTA.
