I'm sure you understand that Reverse Splits don't really downsize your shares, although we often think of it that way, and more often than not they end up LITERALLY downsizing through dilution and repeated RSs. We all know that scenario.
But as long as the float remains low, the value of your shares remain equivalent. And if the value of the company increases, a smaller float will result in - theoretically - a larger potential increase in sp.
If the float remains small. The argument here is what will happen to CB's Preferreds, will they convert over time or not, and what will he do with them when he - as he - gets them? If he doesn't sell them, if they're not dumped into the trading float, it's no big deal.
The bigger issue is what happens to the PP shares, and Hawk has said that they will be locked up for 1 to 2 years. Again the argument is whether he has the facts straight (from the company).
Another issue is what about the AS of 500 million shares? If they are dumped, if they are used to dilute recklessly, the float will not remain small. Has CB recklessly dumped shares in the past. No. Might he in the future? Who knows? It's a bet.
The idea that JB has preferred shares that he will use to own 35% of the company is unfounded. Can anyone link to a current filing which shows his share count?
But the idea that your hand or your shares will have been "put through the intake of a jet engine" is ridiculous. You have not been ripped off. The rip-off, if one was to occur, would be down the road. And that's a bet - either for or against the company.
The truth is more complicated, and we don't know what will happen. But at least there remains the potential for the float to remain small for a period of time - and that's what I'm betting on.
