Karlstier- Absolutely! I agree with your comment "...have significantly more shares Authorized than Issued". But the difference is those companies have the self discipline to never approach or max out the A/S, unlike what Medtainer has done here.
When A/S is reached the company has limited tools like voting to raise A/S again (looks bad), do a R/S (CAN be good if proportional; not being done here, this is an out of proportion A/S reverse), share buyback (yeahhhh, nope), and similar. The 'good' companies keep issuances to a minimum basically.
Here, Medtainer has managed to get to or within spitting distance of 6Billion shares being used! They realize the handwriting is on the wall and they'll run out soon which ties their hands. So how to add another equivalent of 4Billion shares without too many noticing and the share price dropping like a rock? I know, let's do an R/S and call it a "reduction" of A/S while really adding more shares available to sell afterwards. It effectively stalls the running out of shares and continues being able to profit off shareholders until it hits 100M shares issued post-R/S. Watch for the post-RS price to be controlled and 'tamped down' with this reserve of shortable shares too after uplisting (imo).
I agree completely that if this had been a straight 1:100 and left 60M A/S this move would have been good, much needed, and overdue business move (I've made previous posts about this even). But having watched this since inception, I do NOT believe management will just magically stop issuing shares after the R/S. Flexibility in share structure is good-I agree. But the track record of now reaching 6B shares issued is a (bad) company management issue, not a standard company practice similar to F500/Nasdaq leaders. Even if they had done the R/S back when it was 5.1B it would've made for a better scenario; now it just looks...off/wrong/for the wrong reasons/etc.
My luck with lotto and these OTC "moon shots" hasn't been great in the past, but we'll watch how this plays out... Like I said, I would LOVE to be wrong with this one.
