American Energy Production Inc(fka AENP)

[aardvark]

As an AMEP stock holder I need to know the following regarding proposed R/S:

What is the business purpose of the split? (i.e. management's plan not just speculation) Is it:
a) to increase stock price to enable a move to a different exchange.
b) to reduce the outstanding number of shares so the company can raise funds by selling more stock?
c) to deter a potential buyout?
d) a combination of the above.
e) something else.

Depending on the answer, the R/S may or may not be a good idea. Regardless though, by requesting a 1 for 25 R/S with no adjustment to the A/S, AMEP is asking me give authority to dilute my investment so much that it could become practically worthless(even assuming that the preferred stock reverse splits along with mine). I will not give management such a huge pool of shares to work with since as an investor this proposes a new risk to me.

Maybe management could persuade me to vote for an R/S by explaining more about the purpose and buiding some protection in for existing shareholders (i.e. decreased A/S and restrictions on unallocated stock).

Please reply if you think I am missing something, thanks

Aardvark