High Wire Networks Inc (HWNI)

[nordicroots]

A split in either direction does not change the proportional value of each individual shareholder's ownership of the company. Using a simple example, let's say you have a whole pie and cut it is cut up into 100 slices or pieces (analogous to your ownership in a company as with shares of common stock) and you personally started off owning 10 slices (10 percent) of that pie, if nothing else changes and they do a ten for one reverse split of that pie ownership(100 pieces now become just 10) you still own ten percent of that pie - its just expressed in a different number of overall pieces/slices/shares (you used to own ten now you own just one - but its key to note your percentage of ownership of that pie has remained the same).

What you seem to be fearing is the potential for management to then dilute the shareholders at some point AFTER such a reverse split. And at this point there is nothing to suggest this would be the direction this management team would be inclined to take. Their track record so far does not portend this sort of outcome - in fact, I think it is clear that to date the shareholder's experience has been just the opposite - you have to keep in mind these guys have been retiring shares of the common not really adding to them; this sort of behavior is the opposite of diluting shareholders. So the real question is do you give them the benefit of the doubt and trust them to do the right thing with regard to meeting their fiduciary responsibility to shareholders?