Read Post 243537 carefully - the theory fails going the other way......
All accurate.....
"Biel's Market Cap is Only $31.2 Million Dollars
Market Cap is the Actual Way a Company is Valued.
Share Structure regardless of what you read is simply a component of
Market Cap and Market Cap is What Matters.
24 Billion Shares Outstanding X $.0013 = $31.2 Million
Same as
312 Million Shares Outstanding at $.10 Per Share
Same as
31.2 Million Shares Outstanding at $1.00 Per Share
Same as
3.12 Million Shares Outstanding at $10.00 Per Share
Same as
312,000 Shares Outstanding at $100.00 Per Shares"
Now, keeping the same 'Market Cap' at $31,200, since what the market thinks BIEL is worth is the only real constant, let's change the shares from your number, again, of 24 Billion shares up, instead of down as you did in each example, to 65 Billion and you have a share price of......$.00048, further into the toilet!
So, someone owning 10 million shares yesterday @ $ .0013, a value of $13,000.... now owns that same 10 million shares @ $.00048 today worth only $4,800. The all important Cap Rate, the value of the company did not change, only the # of shares, but that number almost tripled. Your examples only contemplated reducing the number of shares for a couple of years, never increasing the number of shares.....
Whereas, by changing the debt to more conventional interest only, but with IBEX and St. Johns keeping part of it, those wanting a pound of flesh may back off. But pounding the sp down from .0013 to .00048 will trigger outrage and actions, all over the place......"
Further comments.....
The equitable answer is perhaps achieved by correcting what the SEC defined as the ill-gotten gains, the few million dollars already extracted from the corporation and the convertible notes generated by the original unsubstantiated 'nominal amounts' loan scheme, which taints successive convertible notes in that chain.
It was suggested by someone else, as too generous, to change the landscape and have the Whelans retain 5 to 7 billion shares and change the balance of current notes to conventional interest-bearing debt, thereby reducing the potential share structure of 63 billion shares(at the time) by 28 billion or so to approx 35 billion. A positive 'fix' to the absurd share structure that was holding back the share price then, and still is today.
My opinion, in March of 201, when asked for it, was to have the current CEO then, suitably reward himself and family with 5 to 7 billion shares plus repayment of dubious millions in unsubstantiated debt, stemming from the unproven 'nominal amount' fiasco.
After all, 5 to 7 billion shares at 10 cents ain't rubbish and the moves would provide a lot of goodwill and safety from regulatory and litigious activities by angry shareholders by doing the right thing. Never wrong by removing the 'ill-gotten gains' SEC label!
The scenario was never tabled, since the CEO at that time said "No", yet again, to all friendly financial and management assistance offers, which envisioned the management team remaining intact, while expanded as necessary.
