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Re: Stonewallet post# 215

Saturday, 01/31/2026 3:42:26 PM

Saturday, January 31, 2026 3:42:26 PM

Post# of 302
Stonewallet...reverse split, Capricornos, etc......

Would be interested in hearing your take on the 20-1 R/S. I know that you mentioned a few months ago that you had accumulated a nice position pre-split. I also managed to pick off a few.....purely speculative. This now has to be one of the lowest float tickers on the OTC. I understand that it is strictly hypothesizing right now, but any thoughts on potential reasonings behind the split?



Post-split I own 447 shares and my cost basis is a little under $17.24 per share. I really don't have any good guesses regarding the reasoning behind the reverse split. Maybe that will become a little more clear once the company produces some OTC Markets filings about the latest change in control. It is going to be kind of interesting to see what happens here (good or bad). Some general observations on my part......

I have not seen the January 14 Nevada SOS filing detailing the reverse split. But considering the high number of 1 share trades that occurred just before the reverse split became effective, I think it is reasonable to assume there was a round-up feature attached to the reverse split. A round-up play is pretty nice for people who didn't already own any shares (or had additional brokerage accounts where they could have purchased a share of BUSC in each account) since it is a way to receive a bunch of shares for basically just the cost of whatever your brokerage commission is. For selfish reasons (since I already owned the stock and don't get any benefit from the round-up), I am hoping the round-up ratio was only 100-for-1 because every share issued in the round-up is dilution and increases the DTC share count.

Sometimes it can take the company, transfer agent and brokerage quite a bit of time to get those shares distributed. The last round-up play I participated in was BGLC when it uplisted from the OTC to Nasdaq. It seemed like it took forever for TD Ameritrade (prior to the Schwab merger) to get the shares in my account. It will be interesting to see if those new BUSC shares become tightly-held or whether they become an overhang that presents some potentially attractive buying opportunities.

Based on what very limited information we have on the OTC Markets profile for BUSC at the moment, I think it is reasonable to assume that BUSC will be undergoing a reverse merger with an Asian/China company. The market for Asian reverse mergers is extremely hot right now. The legacy share valuations on a lot of these shells/RMs involved with Asian companies are reaching very nice levels. For example: VVWT has seen its legacy shares reach a valuation over $4M. NBRY has seen its legacy shares reach a valuation over $6M. ACMB has seen its legacy shares reach a valuation over $9M (and it has accomplished that with $7.2M in legacy debt sitting on its books). That is extremely encouraging to see, and makes a person wonder what BUSC might be capable of doing if positive developments occur with this stock. The potential is there for BUSC to become a crazy good play, and the potential is there for BUSC to become a horribly bad play. I'm willing to take a chance and find out what happens.

I don't know what the potential reverse merger target for BUSC might be (or the business direction it might take). But I do find it somewhat interesting that Keru Jiang (the controlling shareholder of Capricornos Investment Holdings Limited) is listed as an insider on the OTC Markets profile page. Capricornos was registered in the British Virgin Islands in early September 2025. BUSC underwent the most recent change in control a month later. I have not found much information about Capricornos, but it was a pre-IPO shareholder of NASDAQ: CCHH, a Malaysian restaurant chain which went public in October 2025.

The reason why I find the timing of the Capricornos BVI registration and BUSC change in control a bit interesting: There is some similarity between this and another shell (MOMT) that I have a position in. The company that completed the acquisition of the MOMT shell in January 2026 registered itself in the British Virgin Islands in December 2025.
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