A "Think About It" Scenario.....
Let's figure that Peter got in way, way over his head, first on the stock side with the Carnes dealings and secondly on the production side when his optimism in terms of requisite resources and timelines proved to be a disaster. Worse, it's been a train-wreck throughout in terms of what he said and what's come back around on him like a boomerang from hell, and has all the potential in the world of causing him significant civil and even possibly criminal problems, particularly in today's markets.
Peter needs an out. He needs a way to keep the world off his back and the wolves away from his door, so perhaps he's presented with a scenario like this from an "enlightened" third party who has experience in the slippery world of penny stocks (speaking very very generously about the penny part, of course).
First of all, Peter gets more treasury stock authorized; he's going to need a big number in there to pull this one off.
He then does the "impossible", and reverse splits the O/S on a let’s say 1 for 1000 share basis, thus leaving approximately 1.5 million shares outstanding (@ $.025?) (assuming that the entire "old” 1.5 billion A/S has all reached the float, which, of course we don't know for sure), with the billion new treasury shares still sitting there.
The next step would be to initiate a reverse acquisition with a company with which he sees a logical synergistic relationship, (which translated loosely, means a comfortable and potentially highly profitable place for him to land, g'day!) which, solely for the sake of conversation and with absolutely no factual basis whatsoever, we'll call "Newco 5".
Revenge "acquires" Newco 5 for let's say 100 million of the new billion treasury shares, (or whatever number works, based on the valuation schedule adopted, but it really doesn't make any difference, because Peter owns all the voting shares and can make the deal for book value or goodwill or whatever he can agree to with Newco 5), and Newco 5 emerges as the surviving entity, with the reverse split RVGD shareholders and the current Newco 5 shareholders all owners of a spanking new Company.
Hypothetically, this new company is already profitable, and the "old" Revenge becomes, let's say (again) just for the sake of conversation, the dedicated assembly and advanced design entity / division of the mother Company, Newco 5.
Newco 5 can then take a pressure free year to age it's stock, get it's ducks in a row and brag to the market place how they've done a seamless synergy based acquisition that will add, oh, let's pick a number at random, how's about $80 million a year to their gross sales, while they work on whatever kind of vehicles that the market wants from that point forward. They can do a tidy little secondary offering with all the old RVGD unpleasantness behind them, and have real numbers, a real Company and real PR's to present to the investment community, all for a modest cost in the overall scheme of things.
In this scenario, Peter wins big (the methods in which his compensation can be structured for this maneuver are endless) and gets a lot of upset shareholders off his back as he can hold both palms in the air and say "I put us into an industry leader that has the wherewithal do absolutely everything I ever said we would do...my shareholders are extremely lucky and my conscience is more than clear". Tell me you couldn't see that phrase in a gracious parting Peter Coloraffi PR!
Peter Wins…..
Newco 5 Wins…..
The current RVGD shareholders get the royal shaft of course, which they’ve been prepped for, lied to and scared with for the past several months as the share price evaporated and they looked at possible quintuple zeros. (just a metaphor, relax) Under this format, they’d at least have a piece of something, with the only problem being the term that they’d be holding the shares to make a little, which might be long down the road, but not the 5 zeros, they’re looking at on the horizon right now……hopefully
Then they'll all sit back and put another shareholder on the barbie.
There are lots and lots of ways to address something like this, but the more you look at it, don't you think this would make some good sense to Peter?
Don’t you think he’s tired of all this grief?
Think about it……………and have a lovely evening all!
