Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

I suggest you re-read my post. I did not start the talk about reverse splits, I merely pointed out that it makes sense under certain circumstances.

Actually, a reverse split would make a lot of sense.

Pay off all the convertible debt with interest, and pay off the penalties. It might take nearly all 6 billion shares.

Then do a 10 to one reverse split, but keep the authorized shares at 6 billion. There would only be about 600 million shares outstanding. New notes could be issued to pay for the GSL. Every shareholder takes a haircut, but things become viable again.

It puts the company financially where it was two or three years ago. This time the GSL is ready to launch (plus or minus some stuff (bags, advertisers)).

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Now, if Benny has a sure-fire way to finance the GSL launch (as well as operating expenses for the next few months) without issuing new debt, then a reverse split makes no sense. I've been thinking that he does need to issue new debt to finance it.

I think the key to a reverse split is to pay off all debts (including interest and penalties) first.

Again, if Benny has an alternate source on money to use, that is better than a reverse split.

I don't think another increase in authorized shares would be sufficient.