Plandai Biotechnology Inc (PLPL)

[Kool Aid Man]

Reverse splits: loss comparisons-->>

BEFORE a R/S
1 million shares at .0007 today has a total value of $700. The farthest the stock can currently drop is to .0001. That means the most you can lose right now is -85.7% or $600. So if that happens you'd be left with $100 total value.

AFTER a R/S
A 1-for-100 reverse split means your 1 million shares would be reduced to 10,000 and repriced at .07 each --still the same $700 total value.

HOWEVER, now if your .07 shares fell to .0001 you'd lose -99.9%. This time your $700 value would fall to---$0.70 cents (total). To walk away with the same $100 would be equal to losing 8,571 of your 10k shares priced at .07 (the remaining 1,429 shares x .07= $100).

Again I say, reverse splits are how new managements rid themselves of the obligation to share future profits with old bagholders who were fleeced by previous managements. New managements want clean tickers with no debts, obligations or liabilities. They want and need shares for themselves and business activities.

I've personally see two 1-for-50,000 reverse splits with stocks priced at .0001. In those cases, 1 million shares x .0001 ($100 value) became 20 x $5.00 ($100). Within 2 weeks those $5 shares were below $0.25 cents. I just checked and those $5 shares are currently at 0.08... a loss of -98.4%.

Ken and Tad have served notice to all that a 1-for-100 R/S will happen. People can hope it won't but I've explained why I think it will. I don't think they're kidding. It may be bad now but can get much much worse after a R/S. I could be wrong but I don't think these guys give a rotten rats arse for anyone but themselves. Good luck