Spongetech Delivery Systems Inc (fka SPNGQ)

[underdog150]

Spin, lets say that both the A/S and the O/S were the exact same 900 million, pre split to make the numbers easy..
A 100 to 1 split would reduce the O/S to 9 million shares outstanding. If you only reduce the A/S by a factor of 3 to 1,
900 to 300, then the post split leaves the A/S 97 TIMES higher than is was pre split. How is that possibly good for shareholders? I believe that's the correct ending number with my obviously biased basher math?
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wadi: Maybe I'm mistaken, but aren't only O/S effected by a r/s? Then assuming that is the case, and if the A/S of 900m would not have been reduced effective 9/22, then wouldn't the A/S still be 900m after 9/22?

So, in effect mgmt. is reducing A/S by 2/3 from what it was --because r/s do not effect A/S. What am I missing here?

So, You are looking at the A/S reduction to 300m post split as if it is a disguised 30 Bil. pre-split. And I do not think one can view it that way because r/s do not effect A/S. I guess my logic is different than yours. Spino