janice - quick question for you (or anyone else that can help answer) on another subject - this is from one of the 10K's from one of the stinky pinkies I am following:
In connection with the 1 for 100 reverse common stock split on May 29, 2015, the conversion rates of the outstanding convertible notes payable were not modified. As a result, in the event all potentially issuable shares were converted, the holders of the existing notes at March 31, 2015 would be issued 27,458,608 shares of common stock representing approximately 99% of the Company’s total shares outstanding on an if-converted basis.
In other words, because the convertible notes were not modified (ie reduced by a factor of 100), the effects of the 1:100 reverse split resulted in the debt holder instantly receiving 100 times more value for their convertible notes!!
Question: is this legal/legit practice?
