Redwood Group International (RDWD)

[Sloth97]

They had over a billion shares in the A/S not the O/S. They had plenty of additional shares to sell to fund operations. The reverse split did nothing to raise money. The price plummeted after the split and they couldn't sell off enough shares at the higher prices to get money so they had to increase the A/S and O/S to offset the huge price decline to get the same amount of money. If they didn't do the R/S, they could of sold the hundreds of millions of shares and had no effect on the stock price while they secured funding.
I went to shareholder meeting after they increased the A/S to 1.2 billion. They said they raised it that high because they didn't want to have to raise it again. I asked if they would do a reverse split and they said they wouldn't.
Nobody bought the stock after the split because of the RS shadow hanging over its head and it settled back to the .0002s again.

They had other choices and blew it with the RS. Didn't affect them because they didn't own shares but it affected the shareholders. We would have a lower AS and OS today if they had not done the RS.

Sloth