Blum Holdings Inc (BLMH)

[britto106]

You are missing the point. I don't think anybody minds (atleast i don't) selling shares to raise money used for accretive acquisitions. But the dilution that would result from a reverse split made prior to the conversion of ALL the B shares is a completely different story even if it is done in the name of making some killer acquisition. The insiders by the stroke of a pen can basically steal almost all the ownership of the company away from the common shareholders.

As I said they are not going to raise the AS over 1 billion so the only way they can get enough shares to sell to raise capital is to do a reverse split. In a reverse split, the number of authorized shares does not adjust and would remain at 990mil.

But since the B shares don't adjust in a RS the Insiders will not be diluted along with the common shareholders and they now hold 40 million b shares which will convert into over 220 million common pre or post split.

So the bottom line is they need to convert the B shares and then do a RS before they go on their buying spree so the common shareholders are not diluted into oblivion and I will believe it when I see it.