Actually, after I read it I still cannot figure out why the reverse split other than he just does not know what he is doing.
I am a little confused by the fact that first, they list the RS effective on Jan 21 and also they indicate 35,043,000 shares out as of Feb 11. While I still classify him as a dumbutt, I really think he just didn't know how to handle the "merger". They already had 80 million preferred so it would have been easy to issue the preferred with some special conversion rights so as to make sure they retained majority interest.
With 43,000 outstanding outside of the 35 million issued, that means that there were actually 387 million outstanding before the split and a lot of those couple of days volume were the company selling some shares or maybe even Dennis Vadura for all I know.
Right now I think he is more idiot than crook just from the info in today's filing. I can easily see how in time those 35 million shares might be exchanged for preferred and do a little forward split to get this back up and running. Lots of damage done here right now though in the way of investor sentiment, be a while before he ever regains enough of it to keep this outta the toilet.
One thing is for sure and that is the fact that the 35 million shares they issued are pretty much worthless at this point until the float is at a minimum tradeable level.
