and;
Re: New A/S of 400M Don't think you quite understand what's going on...Galo is giving a stock for stock divvy and a cash divvy (1/2 cent). When the A/S (and O/S) is doubled and your shares remain the same in qty, your shares value just dropped in half...that's called dilution. The situation here is not dilution. Here's why.
Galo announced a divvy on 18 Dec in PR (so there is an explanation from mgmt). Here is an excerpt:
"...The Company's Board of Directors has voted unanimously to issue a cash dividend of 0.005 (one half of one cent) along with a stock dividend of 1 for 1 (one share for one share owned.) The cash dividend will be paid from earnings..."
When you receive a 1 for 1 divvy, it's like a 2:1 forward split. The A/S (and O/S) is doubled, but so are your share quantities, hence though the PPS drops in half the day after, you have twice the shares, so no value is lost.
Now, Galo had to increase the A/S, because the O/S is at 179M and maxxed out.
Your real question here might be, if a non-event, why do share divvy at all...good question! Remember that divvies are paid by the company, except in cases where shares are shorted, then the shorts have to pay the long they borrowed from the divvy. So now shorts have to come up with another share (plus the 1/2 cent) for everyone they've shorted if they don't cover before the divy pay date.
Generally, divvies realistically force shorts to cover, but a 1/2 cent one may not be enough to clean our stock of shorts and naked shorts.
