After the RS:
Well, this one is due to the fact that they have more convertible debt than they have shares available. The two choices are to pay off the debt, or give them shares. There are no shares, so that is not an option. Paying off the debt would have to come from revenues or selling something. Or new debt with different terms.
What to do, what to do? Oh, maybe have another shareholder meeting to increase the AS. Yeah, that's the idea, increase the AS so the dilution occurs over more total shares. Nice. Not.
Or, reduce the OS - same number of total A/S, but now there are available shares to meet legal obligations for convertible debt. That does not mean the CONVERSION will occur, it means they CAN meet the legal requirement in their debt documents.
So, the RS is REQUIRED just to be legal. It does not mean that the debtors will just automatically choose shares over payments. The conversions are in case ICLD cannot meet the payments + interest. Conversions are how companies ensure they get paid when a company doesn't pay their payments on time.
So, let's see a little intelligence regarding the reverse split here. It is needed to meet legal requirements. It is a better option than increasing the AS. Something HAS to be done, because they are in breach of contract right now.
Upcoming news will make clear what is being done, and why. All this stupid prediction is just that - stupid predictions. Munroe knows how this all works. He wants his own investment to pay off too.
Anyone that thinks ICLD is not working their way out of bad debt and making a profitable company should just sell their shares and move on.
Why on earth would anyone hang onto these shares if they didn't believe that? And, why would anyone stay on this board predicting doom if they still had shares? The answer to that is that you don't own shares and predict doom. As soon as you realize that, you can see who owns shares and cares, and who wants to drive the price down through erosion of confidence.
The due diligence has not changed. No amount of chatter on this board changes a thing. If you invested because of fundamentals, you should only buy/sell because of changing fundamentals. We will only learn of these changes with public releases.
