Flexpower Inc. (FLXP)

[PayDirt!]

Reverse Share Split (Corrected)Posted in Investor Relations at 4:06 pm by adol77dai51

QUESTION:

I have heard some shareholders claim that a reverse stock split will be coming soon. Any truth to that?

RESPONSE:

As we have said before, there are no plans to do a reverse split. It has not been a topic at the Board level. Doing a reverse split for the sole purpose of boosting the stock price is not on the table at this time. There seems to be a lot of speculation regarding a reverse split, but it has all been at the shareholder level.Some shareholders are pushing for one, based on the logic that by reducing the number of outstanding shares and increasing the value per share, the volatility of price changes will be reduced. I.E. At the current levels, an increase of .0002 to .0004 is a 100% gain. Similarly, a drop from .0004 to .0002 creates big losses.Please see recent discussions on our Town Hall, regarding buybacks etc. We continue to receive feedback from shareholders that the stock is undervalued. We would love to see our shareholders make big gains if the stock begins to run up again (and yes, we believe it will).Does that mean that the Company can state categorically that there will never be a reverse split? Of course not. Management would be negligent not to consider all available options depending on circumstances at any given point in time. However, at the present time, management believes that there are no underlying business factors that would indicate the need to execute a reverse split.


Note: Original question was posted inaccurately, and referred to a reverse merger by mistake.

QUESTION:
You just posted that there are no plans to do a reverse split. Then say that doesn’t mean never. Does never mean not tomorrow but next week?

RESPONSE:

As stated there are no plans to do a reverse split. However, we know enough to ‘never say never’. Is it possible? Anything is possible, but this is highly improbable within the foreseeable future, unless there is some very major opportunity that would require such a move. So, in the absence of any very large business developments, which will be appropriately disclosed should the time come, there will not be a reverse split.

Note: The original posting mistakenly referred to a reverse merger. The intent was to discuss reverse splits.