mPhase Technologies Inc (XDSL)

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The large number of shares of common stock outstanding have caused significant dilution and resulted in our common stock becoming a sub penny stock. FINRA has previously denied the Company the right to complete a reverse split of our common stock owing to prior securities law violations of 2 officers of the Company

In order to complete a reverse split of our common stock our Chief Executive Officer and Chief Operating Officer each of which are Directors of the Company must resign their respective positions with the Company. The loss of these two key officers could have a material negative effect on the Company’s operations. Absent a reverse split of the stock it is unlikely the common stock of the Company will trade above either sub-penny or penny value.