I don't know why there is so much surprise at the reverse split, as many people posted it would come. I believe Dew pointed out that they would do the reverse split to drive the number of shares down so that the $200 million limit wouldn't block GTCB from raising new funds by issuing additional shares. That made sense to me so I expected it would happen but thought that would be the news for the CC since I didn't expect any deals to be made.
A reverse split in itself isn't bad news, but as MTB reposted, there is now 200 million shares Cox can play with, and that is like placing gasoline in the hands of an arsonist. It does worry me for because Cox hasn't shown any concern for shareholders in the past. I am curious as to why this was announced just before the CC, but it may mean they already have someone lined up for financing. Looks like we are facing either LFB as majority owner or another financier to pay off LFB and be a major shareholder. Of course there could be the worst of both worlds, the LFB debt gets converted to GTCB shares, and a new financier comes in to take a big chunk out of GTCB.
