Regarding this reverse split matter, the 10-K also includes the following paragraph:
"Our stockholders approved a reverse split proposal at our annual general meeting held on August 19, 2015, which approval allows the Board to implement a
reverse split in its discretion at any time prior to December 31, 2016 and is not contingent upon listing our common stock on a national stock exchange. However,
the terms of the securities purchase agreements that we entered into on January 14, 2014, March 27, 2014 and June 24, 2015 prohibit us from undertaking a reverse
or forward stock split or reclassification of our common stock except for a reverse stock split made in conjunction with a listing of the common stock on a national
securities exchange."
This would seem to exclude any arbitrary "overnight" decision by management to effect any reverse split without receiving an approval or amendment to those security purchase agreements referenced.
Regarding the takeover or acquisition theory, I am not saying it's impossible, but I would note that more than 60% of Generex stock is held by about a dozen large investors. It would seem necessary to have them, or at least most of them, to buy into the terms and price of any such proposal.
AI
