Woodbrook Group Holdings Inc (WDBG)

[trader59]

I’m getting that from all his talk about doing an IPO, then a “reverse IPO,” to NASDAQ, along with the plans for huge growth, expansions, (yes) acquisitions, etc. Add to that the huge reverse split (big reduction to the O/S) followed by the restoration of the A/S to free up common shares in the treasury.

He took his company public, and you do that to gain access to the public markets, sell stock, raise money, and invest it back into the business to grow. The RS made sense after a RM, as the legacy equity in the company was tied to the previous endeavors of the shell and was worthless to him. Nobody is going to buy additional stock from a company if a huge part of the A/S is already issued and outstanding. Pretty sure this one had about 2/3’s of the A/S already trading, which means a new offering would have been significantly diluted.

While I continue to believe this business may be legit, I wouldn’t touch the existing stock, as I expect it to be diluted significantly “out of the way.” But that new offering may be priced attractively, depending on the plan to invest the proceeds. He’s a big risk, though, that Twitter (I think) rant was real, so he’s a bit of a flake.