BC,
Why is your opinion "Options: Once the company gets to 300M shares or so the company MUST reverse say 10 to 1 to get the company down to 30M shares. The investors stake will be reduced and the company will need to begin again with a managable capital structure."
the only way this issue can be handled? Why MUST they reverse? There are other options, you know. People just let the company off the hook by not demanding that they entertain the other options used to get the share structure back down to more appropriate levels.
Let's take the most optimistic case scenario:
In a couple of years, with ZERO debt and the new 40MM shares being placed in PIPES with shares restricted for two to three years, we will be working with basically a free-trading float of about 90MM to 100MM shares over the next two years - ASSUMING the company keeps its word to NOT USE THE SHARES to dilute us. So all the revenues from sales can go to operations of the company and the profits will be left over as net income. This will not be eaten up by paying off all the cumbersome debts and other financial obligations from long ago. So, in optimistic anticipation that the sales can continue on a pace to get at least $10 to 15MM in sales over the next two years with a profit margin of about 40%, that would be a profit of about $4 to 6MM. Give it another year of continued growth, and we should be able to get up to about $12 to 16MM in net income, which, as I stated in my previous post, then
I think we need to demand repeatedly that, ONCE THE CASH FLOW HAS TURNED POSITIVE to over $4MM net income for 3 quarters, or (note, this is "or", not and) they have used over 200MM shares to "Grow" the company by means of M&A, etc., or to give incentives to employees for their years of hard work and loyalty, that management do a stock buy back of 10 to 20% of the Authorized shares (most likely taking it from the OS float) and retire those shares - remove them from the treasury. No more M&A or employee share issuances until they meet this debt to us shareholders. If we get this 400MM approved, they really owe us big time.
I know this is a bit of a dream, but the company does seem to be getting a few cylinders firing for the time being, and if they can get past all these burdensome financial obligations, I do not see why this cannot be a doable scenario. ASSUMING that this is an honorable BOD. Granted, it would be very uncharacteristic for a BOD to give back control by buying back shares after manipulating us so hard to take so much control away from shareholders by increasing the AS to such an exhorbitant level, but it CAN be done. The real question is; Is Virtra really supportive of their shareholders or do they merely view the shareholders as a financial faction to just use and abuse and sell them down the river on a continual basis like all the other OTCBB stocks? Are these people honorable?
All indications from the decision they made regarding the number of AS to ask for when we were in such a corner point to a major likelihood that they are NOT honorable, but they have left us no choice but to trust them and hope that they prove us wrong.
