Verus International Inc (VRUS)

[horst]

Re: the reverse split talk that always comes up, I've mentioned this before: almost any OTC company can do a reverse split whenever they want with no consent of common shareholders. That's because the company's executives have full control of voting rights by virtue of the preferred stock the hold. An average preferred share is good for 10,000 or more votes, and in the OTCs they always structure preferred stock so that they have full control of the company. Therefore, having a R/S approved on the books doesn't mean there's any reason to do one before it expires. If one expires, they could approve another one with zero consent of common shareholders. Bringing this around to VRUS, they haven't reverse split, have no intention of doing a reverse split, and we can assume the one on the books will expire. Sounds like they're likely to do an authorized share reduction in the near term, which contrary to a reverse split would be the biggest catalyst this stock could get - the excessive billions of shares of wiggle room in the AS is the only thing holding this stock down from dime-land and beyond in my opinion.

Anyway, the only protection we have from reverse splits in the OTCs is management who cares about shareholders - and we have that with VRUS.