IF I owned H360 and arranged for my company to be "acquired" in order to take over ownership/ control of a public ticker (i.e. a reverse merger) with a bloated/ maxed out share structure here's what I'd do--
1) I'd get it uplisted to PINK CURRENT (a relatively cheap and easy task). THEN--
2) I'd change the corporate name -which can be done at any time with the SOS for a small fee. THEN--
3) I'd re-domicile the corporation to Wyoming which is the cheapest and and has the fewest filing requirements. Doing so would begin with a new historical record in that state. THEN--
4) I'd apply to FINRA to try and change the ticker symbol (not easy). I'd do steps 2-4 in order to try and distance the new company from the mountain of embarrassing failures by previous management. Even though those old disclosures and PR's would still appear on OTC I'd hope most new people wouldn't spend the time and effort to check them. THEN--
5) I'd pull a big REVERSE SPLIT to bring the share structure back to earth. I'd first find a way to protect myself, my partners and close insiders with something that would be immune from the coming blood bath. For example--
A 1-for-1,000 R/S based on Friday's price of .0004 would result in an O/S of 5.4 million shares (a drop from 5.4 BILLION) each priced at .40 cents. A quick drop to .10 would be equal to a pre-R/S price of .0001. So without a R/S that's as far as a stock typically falls barring suspension, revocation etc. However, there would be a looong way the stock could fall below .10!!! Let's say it fell from .40 to .01 --that's a loss of -97.5% of the value investors currently enjoy. If it fell to .001 then the loss is -99.75%. Finally, a drop to .0005= -99.9%.
IF I WERE NEW MANAGEMENT I would pull the R/S in order to rid my ticker of all the old dead weight --all those who have bought shares under previous and current managements-- and and start anew. After all, their money has already been squandered and the shares they own represent nothing more than a giant liability as they all expect a cut of any profits the new company might generate. Finally--
6) I would make what appears to be a giant reduction in the A/S. As of right now, fully 93% of the current A/S has already been issued and is outstanding!!! That means there's only a tiny amount of equity remaining in the treasury for me to grow my company with.
SO let's say I drop the A/S from 5.8 Billion to 1 Billion. Sounds like a huge reduction, right? Well the reality is --based on the R/S example of above resulting in an O/S of 5.4 million-- an A/S of 1 billion would mean that a mere >>.54%<< (that's (POINT 54%-- just over 1/2 of 1%) of the new A/S would be issued and outstanding!!! Even if the new A/S were dropped to 500 million the 5.4 million O/S would only amount to 1.08% of the A/S.
How tempted do you think I'd be to do ALL the above?!!!! Here's why I would--
I would do this in order to re-load the treasury with hundreds of millions of new shares to build my company with while duping current investors into believing (a) their .40 shares represents no loss in value to them and (b) that I've drastically slashed to A/S while, in truth, the exact opposite has happened.
I've seen this same scenario play out again and again. One of the stocks I follow pulled a 1-for-50,000 R/S on 3/8/2019. In that case 50,000 shares priced at .0001 were converted into ONE priced at $5.00. Those shares are currently priced at .04 --a staggering loss of -99.2% from it's pre R/S value. Just imagine a .0001 stock losing -99.2%.
Again... it never happens until it happens... and it happens more often than most ever dream. Maybe new management won't resort to this nuclear option. If Q1 shows significant improvement one would expect to see the price go up. Then again, the last disclosure had little or no effect. Only time will tell.
My "opinion" is as valid as your "hearsay"
