Innovation Pharmaceuticals Inc (IPIX)

[keltoi]

My math shows this:

Let's suppose a company is worth $100,000,000.Let's say they have 100,000,000 shares out at $1.00 per share.

Let's say they get bought out for 1B and you have 20,000 shares.You get $200,000.(Right?)(1B divided by 100M = $10/share)

Now let's suppose that the company does an R/S of 4:1.They now have 25M shares out.
You now have 5000 shares worth $4/share.(still worth $20,000)

Now let's say the company gets bought out for 1B.
$1B divided by 25M = $40/share (x your share count of 5000 still equals $200,000)

I'm not against a R/S because of that,I'm against it because the track record of companies getting hammered by traders/shorts/etc.is so common after a R/S.
Leo knows that too.

Kelt