Reverse Mergers & Low Float Plays

[Potse]

zenvesting...thanks for the info on BGLC.....

I contacted E-Trade yesterday and got transfered to a specialist regarding corporate actions. At first the specialist responded with incredulity and said "so you bought one share you expected to get reverse split into one new share, then rounded up to 100?!" I said yes and read the relevent language from page 12 of the S-1 as he was reviewing notes in their system, then he said "wait a minute, I think you're actually right, I have a note here from the company's security counsel to DTC indicating the round up provision wasn't properly implemented yet.....give it until August 7th".

Good to know there still is some hope this works out ok. It would have been nice if we could have received these shares much earlier and had the option/opportunity to take advantage of the higher prices. But hopefully BGLC finds a bottom soon and like other Asian-related stocks has its nice moments/spikes.

Between the SEC, OTC Markets, brokerages, transfer agents, and the companies themselves, they sure do seem to make things difficult at times for the retail investor to succeed. Everything always seems like such a struggle. These types of round up plays are not common, so they do have that "too good to be true" feel about them. But they do happen. If I recall correctly I think there was one of these on either a NASDAQ or NYSE merger/acquisition within the last couple/few months. It might have been Mark over on the ORIONS Money Stocks board who mentioned it.

The only other possible "negative" thing I neglected to think about here is if Ameritrade might slap any "reorganization" fee on this reverse split. That would potentially increase my cost basis by another 38 cents per post-split share. So far, I don't see any fee related to this in my account history.