Hi all,
somebody ask me a question through private message. Unfortunately I cannot answer, since I am not a paying member;o).
Here my guess, why Genta increases the number of authorized shares to 100 billion.
When they do the adjustment of notes and convertibles on 31st december, they will probably have approx. 10 billion of reserved shares at an instance (right now there are about 100 million O/S and 1,2 billion of notes and convertibles). My guess about the adjustment: from 0,0395 down to maybe 0,003 - 0,004.
The next financing will probably be 20 mio. dollar again. Knowing Genta they will give away the notes for maybe 0,001 - 0,002. That will mean billions (maybe 10 - 20 billion) new notes/convertibles PLUS the adjustment of the old notes - as they always do.
If they stay at 6 billion A/S, they would have to do multiple Re-Splits to cover, alway having the problem of the share price being to high to pump and dump. By increasing the number of A/S they can pump and dump their asses off, since Genta will stay sub-penny for a while and therefore stay a players stock...
By being able to do two Re-Splits they also dont have to go too high in the ratio.
I hope my opinion was not to complicated written;o).
Looking forward to read what you guys think of my little theory...
Regards
GD
