Good morning and Happy 4th of July. Now my take..........
I received a few emails on the current discussion about the foolishness talk about a R/S Split.
So, I will give my take on this foolishness and the talk about such action doesn't warrant with the current share structure for a number of reasons.
For a company to move from the OTCB to Nasdaq has requirements that under the current share structure of BLEG would never happen for a number of reasons.
Currently the share structure of BLEG is as follows. A/S 900,000,000 with O/S 793,496,116 = MC of $110,000.00
The share structure for BLEG is one of the most attractive numbers for any OTC company out here. Let me say this with complete certainty. The company will never do a R/S with these attractive numbers because they will do more damage than just the mystique of making such a very bad move on the shareholders psychic.
First the uplisting requirements:
1,250,000 publicly traded shares outstanding on the listing, without including shares held by the directors or officers of the company
Company’s stock listed at a price of at least $4.00 a share
At least 100 shares and 550 shareholders
Cash flow of at least $27.5 million in the last three fiscal years
Aggregate pre-tax earnings in the prior three years of at least $11 million or pre-tax earnings in the previous two years of at least $2.2 million
Now, the company will most likely increase the A/S before such a move and in my opinion the increase will have a neglectable effect on the whole of the corporate scheme of things but will allow a much-needed infusion of capital needs if and when it is needed and let me say that this scenario will happen sooner than not. I expect this will probably happen near the end of 2024. I'm talking about increasing the A/S.
Now, as you will notice from above, that the price has to be at least $4.00 a share. For the company to even remotely attempt such a move will wipeout its capital leverage to nothing and for a manufacturing company is a nonstarter to say the least and will basically cause a huge burden on the future aspects as a going concern.
So, before some of you start talking BS about this nonsense try to become more aware of the rules of the road and don't assume making (ass u and me) mentality approach.
This discussion is not in the current environment of BLEG for at least the next couple of years.
The company will need much needed capital and the Form-D recently mentioned was part of this, but it will become a major decision on the company's part and will resort to raising the A/S, but a R/S will never happen anytime soon or never and that I am certain of. The company needs capital leverage, and the only way is to raise the A/S and maintain the current structure to finance the growth aspect of the company.
Full Disclosure: I am a professional trader in these matters and come from a background in R/M. I know the playbook and I have not talked to the CEO or any company folks, but I can assure you on this thread that such talk is by no means in the cards for this company. Its basic business 101.
This company is currently going through the summer doldrums and is extremely undervalued and we will go much higher and my target of.01 stands to the end of the year. Yesterday's action was really quite positive if you noticed that the trades on .0013 were all buys and that was in the tune of 11m shares were bought up within minutes. Something is brewing and it's all good.
Got to get back to my building and today's barbequing.
Happy 4th!
Have a good day
varok
Bullish
AI
