
Friday, November 16, 2018 1:20:28 PM
The only observation I will make is that assuming the RS goes through it is highly likely the price will continue to decline below $1 no matter what the price is at the time of the RS (0.0001 or higher).
The reason for that is quite simple, the amount of dilution still to come from the convertible notes, the Bolton’s convertible preferred or even the S-1 offering itself will put on tremendous downward pressure. Right now $0.0001 is the limit to the downside in terms of tradeability, but that lower limit disappears once the RS is affected.
I would also point out that the driver for the RS is to get to and maintain a $0.01 bid price in order for the S-1 to go effective. However Cellucci is doing a reverse split to $1-$3 (depending on the pps at the time of the split). That is 100-300 TIMES what he needs. That indicates that not even Cellucci thinks the pps is going to hold post split and he needs room in the pps on the downside to make sure it stays above $0.01 before the S-1 goes effective.
On the other hand if the RS is not processed by FINRA and the stock becomes stuck in the trips then it will likely go no bid as the note holders and Bolton’s compete for what remaining buyers there are in the market to sell their conversions into.
"Harsh reality is always better than false hope"
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