Grupo Resilient International Inc (GRUI)

[Leonardo1974]

There has been some confusion on reported OS. Some say over 5 billion and some say just over 4 billion. I will attempt to explain the incongruity on the OS reporting. Here is an abbreviated explanation:

The last FR showed over 5 billion OS. Later, there was a conversion of almost 900 million common to preferred stock. Management claimed, thus, the OS had been reduced by 900 million shares. True, the float was reduced by 900 million shares but the OS (FULLY DILUTED) was actually increased by the preferred premium on the conversion back to common. How much more was OS diluted by the conversion to preferred? That is unknown at this time but the last class B preferred that was converted had a 100% premium, I believe.

Ward, check me on the premium.

Therefore, from the above, there is between 5 and 6 billion shares OS (FULLY DILUTED) that we know of. We have been forewarned to expect more dilution for operations to show on the next FR.

Remember: OS (FULLY DILUTED) is meaningful, ONLY! Market capitalization = (OS (FULLY DILUTED))X(AVERAGE PPS). Float has nothing to do with anything other than shares available for trading.

What's the bottom line? Expect somewhere between 5 and 8 billion OS (FULLY DILUTED) with the next FR. The PR I am referring to was misleading (I am being kind) in stating that the OS had been reduced by nearly 900 million shares.