Shortie and his minions are going to try and scare you with facts. However, they will only post one side of the facts. The negative side of a RS. For example ..."This part of the 8k worries me. In essence what it's saying is that once they complete the r/s.... we, the investors end up with fewer shares in our accts. with what ever ratio they choose 1:2 or 1:100. Authorized shares still would remain at 6bil and they would be able to dilute with more shares. In other words...if approved we're screwed." This is all true, and it should worry investors. And why should this scare you? Because some penny and subpenny companies have used RS as a way to "print shares". Some have utilized the situation that the RS shares are returned to the treasury, and the Authorized amount remains the same. Shares were later placed in the float again, and this situation has been repeated over and over. I've been caught in this scheme in the past; it was ugly, and I did not like this.
Now, for the positive side of a RS (IMO). First of all, you won't believe any of this if you don't trust the company, or their vision of a direction that they have for this company. I trust the company; I trust their vision. We were told that they were looking for non-dillutive ways to obtain financing. I BELIEVE THIS. IMO, a RS is one way to do this. By getting the share price into the dollars, two very important things can happen.
First, Institutional Investors can buy our shares on the open market. Institutional investors will not/cannot touch a subpenny company. FLAT OUT! Getting our share price above the regulatory required level will encourage investment professionals that believe in our vision to demonstrate that confidence through purchasing shares on the open market, or through 144 restricted shares. Second, a share price in the dollars will allow us to apply for admission onto a different exchange. What a coup that would be. Moving off the subpenny type exchanges gives us the opportunity to leave the Market Makers, and allows us to get a single point of trading; a specialist. This will reduce the potential for game playing, and naked shorting. SHORTIE WOULD BE SCREWED. They would not be able to play their games. They would be forced to cover their naked short because there is much more regulatory attention, and their nefarious activities are less apt to be hidden. Shorts would only be able to be accomplished through legal means; the borrowing of shares.
FOLKS ... if you believe that the company is solid, the product has potential, and the officers truly want to maximize shareholder value, I would suggest you seriously consider voting for this proposal in the affirmative. But do not take my word for it; look into the assertions I have presented to make sure they are accurate, and that you can live with the potential consequences (both pro and con) of a reverse split.
OK shortie ... give this post your best shot! Let the bashing of the content and the character assassination of me begin!
Wishing I held more GNTA shares ....
AI
