In order for Wave to raise enough capital to do business until sufficient revenues are there for breakeven, they need to raise funds. I believe they need one more placement. Wave needs to remain on the National Market in order to do a funding like they did last time, with no discount. To do it while on the capital market it has something to do with blue sky and they would have to get approval from all the States to do a PP if they are on the Capital market and not the National market.
There are two requirements of compliance to be listed on the National market. They have to have a capitulation of 50 million dollars and they have to trade over $1.00. Therefore, I can not see a 1:3 or a 1:4 reverse split, if it comes to that. A 1:3 and a 1:4 would put the capitalization under 50 million dollars and Wave would not be in compliance
Let me make this very clear. This is a plan that NASDAQ required. They said to Wave, give us a plan. They plan is a reverse stock split. That does not mean there will ever be a reverse stock split, it is only a plan.
If the stock were to go up over $1.00 between now and July 24th, and Wave is in compliance, a reverse stock split will not happen.
Everyone must look at this for the long term and short term.
We probably will get hit on Monday and Tuesday, unless something else comes out to negate today’s release, it could happen. The price Monday will be physiological. Why do I say that? Because folks, NOTHING HAS CHANGED. Wave is doing business. They are shipping with Dell and Gateway. There is money in the pipeline. If there wasn’t, there would not have been any revenues last quarter and no revenues in this quarter.
In the short term we will probably get hit for a period of time until something comes out to change that. In the long run it will keep us on the National market, and it will keep the funding open to us. It is also very important that customers that are dealing with Wave, are dealing with a company on the National market, this is very very important.
So, I will vote my shares to approve the plan. I am not voting for a reverse stock split, I am voting for a plan to keep Wave on the National market. If that plan has to be implemented, so be it. NOTHING HAS CHANGED. Wave is going forward with all the companies that they have been made public. Revenues will be flowing from these companies.
We will see where the support is on Monday. This may be the end of some of the small players, running for cover. And guess who will be buying their shares at the lows? The houses and the institutions will be the buyers, and many of the small investors will be gone.
The Govt is well aware now, of lost and stolen computers. If the Govt mandates all computers are to have encrypted data, Wave and Seagate are sitting in the cat bird’s seat, and I believe this will happen. They would be foolish not to endorse this.
I will say this one more time: it is imperative Wave remains on the National market. I have listed the reasons above.
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