Aquagold International Inc (AQUI)

[Lochan]

I'm not saying an R/S is planned. Actually, I would say it is the last thing on their minds right now. Theoretically, a company can take advantage of a R/S to raise its share price to qualify for a higher exchange like AMEX or NYSE. In theory, the R/S is not supposed to decrease or increase market cap, but in ordinary pinksheet dealings the R/S is part of a strategy to increase available shares for dumping into the market. Then, what generally happens is that shareholder value is undercut and sometimes practically obliterated, so a proposal to R/S is taken as the worst possible news for pinksheet investors.

Because it is so remote an option at this time for AQUI, when the R/S is mentioned, it serves only as a scare tactic to get shareholders to abandon their position for fear of total loss.

On the other hand, a reverse merger would not involve any kind of stock split, forward or reverse, or other form of capital restructuring and may be a timely step to gain market stability while attracting another class of investor including reputable financial institutions. There is a strong possibility we will see AQUI move in that direction when the time comes. IMO