Alpine 4 Holdings Inc (ALPP)

[dovo]

Just to run some numbers for Reverse split vs. Increasing authorized shares scenarios.
Assume that at the time when the vote is taken to do a R/S that the price per share is $5.00. And the Authorized Shares (currently equal to the
Outstanding shares O/S is 125 million. And the R/S is 1:1.5. Then, the
O/S # shares will decrease to about 83.3 million and the price per share
will increase to $7.50 per share. The A/S remains at 125 million, leaving the company with 125 mill minus 83.3 mill or about 42 mill Authorized but not issued shares to use for acquisitions. That's about $7.50 x 42 mill
equals about $300 million to play with.
They could achieve the same amount of capital for company to use if they increased the authorized shares by about 60 million to 185 million shares with no R/S. They would have in reserve the 60 million shares a $5.00/share which equates to $300 million.
To look at the bigger picture, price per share usually tends to drift
lower after a R/S. And unless they have in immediate need for the capital to invest in another acquisition, it makes less sense than just to increase the A/S. And I don't think they are looking at using $300 million all in one shot, so why take the risk of the share price downward pressure which usually accompanies a R/S?
Maybe I am missing something, so please if any of you have any more insight, please speak.
Thanks