Kim (the CEO) will gain 100% control of the company after the reverse split.
I just noticed something about the upcoming reverse split...
Kim currently has 2 special voting shares. Those special voting shares currently have the voting power of 200 million shares each (or 400 million shares total). Since there are currently about 836 million shares outstanding, Kim has almost 50% of the vote just with those 2 special voting shares.
After the split, the # of outstanding shares will be drastically reduced by the reverse split. If it is only a 10:1 RS, then the # of outstanding shares will go from about 836 million shares to about 84 million shares. If it is only a 40:1 RS, then the # of outstanding shares will go from about 836 million shares to about 21 million shares.
But those 2 special voting shares will NOT be reverse split. So Kim will continue to have the voting power of 400 million shares, even though the # of outstanding shares have been drastically reduced.
In other words, after the split, Kim will have almost 100% of the voting power (and subsequent control of the company). As a result of that, he will be able to sell ALL of his stock (currently about 225 million shares) on the open market and not have to worry about losing control of the company.
"As of the Record Date, the Company had: unlimited authorized shares of Class A Stock, of which 835,733,840 were issued and outstanding, unlimited shares of Class B common stock, of which none are issued and outstanding (Class B common stock do not have any voting rights) and unlimited authorized shares of preferred stock of which 2 shares have been designated as Series A Convertible Preferred Stock of which 2 shares were issued and outstanding."
You will hear some people try to say that this is a great thing. IT ISN'T.
You will hear some try to defend Kim and say that KBLB is his company. IT ISN'T. This is a public company. People invest their hard-earned money in KBLB to obtain shares of the company. That means that they are part owners.
Yet as usual, Kim treats shareholders like trash and puts himself above all others in a special class. So shareholders shares will be reverse split, but Kim's special shares won't be reverse split.
"as decided by the Board; the number of shares issuable upon conversion of the Series A Preferred Stock will not be impacted by the Reverse Split."
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