Company management has said many times they would never do a reverse split before the company is profitable.
Some thoughts on share structure as an investor since 2009:
1) There have been proposals from note holders with equity conversion options (explained on this board) that would result in a reduction of authorized shares - in addition to buyback.
It may involve some sacrifice by the note holders, but before you say that will never happen, the Whelans (family who started the company) have lent millions over the years to keep BIEL afloat (in addition to printing shares out of necessity without FDA approvals and profits) have agreed to forgoe $750k in interest due on loans at the end of 2020 through the end of 2021.
People are involved that are willing to put the company and its life saving product ahead of their own pockets!
2) Company may not have had the substantial cash needed for a share buyback in the past, but their situation is rapidly changing with new partners and infusions of cash from orders and potentially partner distribution agreements. I would not rule out a share buy back in the future.
3) The share structure is only a perception issue for new investors and stuffy big banks and hedge funds, they can stay away as far as I am concerned. Traditional financial advisers/brokers told me to sell my position years ago and they were wrong.
As DewmB. has explained, market cap is what matters, it’s all relative. If enough new money flows in from people who see the opportunity here and aren’t constrained by old fashioned thinking, then share structure won’t matter, it may even help by allowing more liquidity and keeping some big guns out.
4) There’s enough time to worry about share structure later, right now it’s getting the word out about the company and the product and seeing how fast it is adopted by the company. Some solid PRs and a good marketing campaign could result in many new investors taking a look at it.
If the majority are scared off by the share structure, so be it, we don’t need everyone to buy in. Just a fraction of potential investors buying in is all we need.
Back in the day, there were only a couple hundred shareholders in this thing. Printing shares was a necessary evil.
We are in the fast lane now, and the billions of shares don’t bother me at all, they haven’t stopped the gains steadily growing in my account.
AI
