Hey Cap, Whether he Knew it would happen or not, I assure you he is not taking delight in it. If anything it add to the numbers as collateral damage.
May sound like a joke, but on percentage basis $5 is like 6250% on its current value. for signing an affidavit, putting it in a pre-stamped envelope and dropping it in the mail. People spend more time clipping coupons for less monetary benefit.
I realize it is just a starbucks giftcard's worth, but a free cup of coffee or loaf of bread is more than they could ever get for it sitting in a drawer or online broker account(think $5 mail in rebate, would you redeem it?). And cumulatively is still $1500 + the cost and time expense spent on the mailing, which probably actually doubles the $1500 just to put out a targeted mailing of 300 people.
So how much do you think would be a fair price/company resource expense on this venture? $10,000 + expense to offer everyone $30 for 8 cents worth of shares? Then what, the potential backlash of some legal class action suit that require him to hand out $30 to any shareholder that requests it in exchange for .08 cents worth of shares because it was substantial enough that "I" was being discriminated against when I didn't receive my $30 dividend in exchange for 100 shares?
As far as the crash, frankly this didn't have very far to fall. And since post split, he wouldn't be able to dilute a single share through the Reg A until the post split price would reach the, then current pre-split equivalent(was trading .0005/.0006) .0005 pre/.005 post anyways, so the "destruction" from where it sat is temporary at best for those that held, and the only definitively destroyed shareholders at this point, are thems that panicked and sold before thinking it through and doing the math. The rest of us, that realize that anything purchased below .0005 pre-split will be less than anyone will be able to purchase Reg A shares for(and those investors will be looking for more than just a few percent gain, so won't likely sell for anything less than a penny anyway unless something really goes bad).
Even though there is likely to be some post split sell-off or shorting in attempt to drive the price down. But relative to usual R/S announcements, this has been holding it's own thus far with little to no selling thus far on a friday. So even the post split sell-off may be minimal if the fins are good. Pre-split anything below .0005 is a pre-dilution lock as far as the Reg A is concerned assuming he goes through with the split.
So far most of the rest holding seem to be seeing the picture as the selling has dried up considerably and there has even been a little buying. If this holds .0002 through the split not sure there will be much avaiilable if at all in the trips. I picked up 1.5 mil post split shares which may not be available post split for that price if it holds .0002, and although I havent calculated it, it had to have dropped my over all average below the minimum dilution price. A sizable portion of the ask are filled bids that bought at .0002 and will dump what they didn't sell at .0003 as soon as R/S is official if it comes. IMO
And let's not forget if all goes well down the road that he can also forward split this to re-establish the previous share structure once the R/S serves it's purpose.
JMO
AI
