American Green Group, Inc. (AMNE)

[otterman]

On a given day you will receive 5 shares for each 1 that you currently hold. The SP will then be divided by 5 and will begin trading from there. I dont see any logic in this move, it is usually done by companies with a high SP to make the stock more affordable. The company also states that they will attempt to buy back shares with the money coming in from the sale. Again, makes no sense (at the current SP) to split and then buy back? They will also have to file to have the AS increased as the split will violate the current 75MM AS.

Perhaps someone else can clarify the logic further?