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Re: Helter Skelter post# 21409

Friday, 01/07/2011 8:16:50 PM

Friday, January 07, 2011 8:16:50 PM

Post# of 29028
Oh I see what they did now. First they will wipe out almost all the commons reverse splitting them down to 2.9 million. All their stock is in preferred shares which don't get reverse split. So after the split all that is left is 2.9 million shares held by all of you.

Then what do you know... they have preferred shares they can convert into 160 million new shares. So shell holders like you guys end up with 2.9 million shares out of 162.9 million shares. They left shareholders with 1.5% of the new company and gave themselves 98.5 of the merged company.

Just some observations:

(1) BS, sperber, somehow, apparently, managed to hang onto 60,000 preferred shares. They can convert to 600,000 common shares. He'll wait until after the reverse split to convert, obviously, in my opinion, as the preferred shares will not be split.

(2) The remaining 15,940,000 preferred shares can convert to ~160M common shares

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