H-D International Holdings Group (HDIH)

[Don Beasley]

Some Potential Clarity - HDIH

Prior to a reverse merger (TRKGD-HDIH) a company may find itself with too many issued and outstanding shares and not enough authorized shares to be able to do an alternative offering.

If you’re dealing with a previously-operated shell, you’ll often hear in the industry, “this shell needs a reverse”; meaning a reverse stock split to true up the stock to match what’s stated in the company charter as well as provide a more reasonable stock price and reduce the amount of float for the new initial offering.

The difference in doing a reverse stock split for a reverse merger is that it’s typically not done to attempt to stay on an exchange or paint a more rosy picture. It’s just a necessary process to get something new into a currently non-operating shell corporation.

https://investmentbank.com/reverse-stock-split/