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Re: Demolition Man post# 7653

Sunday, 08/16/2020 12:41:00 PM

Sunday, August 16, 2020 12:41:00 PM

Post# of 44690
kmack49..you do have a legitimate argument. There is no doubt. I've gone through a few R/S myself. However you are making the mistake of viewing this as the glass half empty rather than being half full.

Eventually this company will need to execute one, however the R/S will actually benefit a high growth company that is producing steady positive PRs to provide support under the higher PPS. Insiders will sell shares at the higher price to raise capital to finance the company's expansion needs. That is expected.

However, dilution will NOT be an issue if the company sustains positive growth both in sales and profits. In addition, the higher stock price will enable RLFTF to uplist to the NASDAQ, hence providing more exposure to institutions... hence the new higher stock demand will support the higher PPS.

There is just toooo much going on right now for management to muddy up their waters by considering an R/S. However down the road, once they receive FDA approval to market the product and mass production is under way, I suspect that an R/S may be in the cards which can be a good thing for the shareholders. For now, there is absolutely no need for an R/S.

So with a high growth company (which we expect RLFTF to become), the R/S can be a very positive event for the long term shareholders, and it can likely lead to increasing equity values.