CBA Florida Inc. (fka CBAI)

[MrLong]

CBAI RS Denial Example = Generex Biotechnology (GNBT): Reverse Stock Split Denied by Shareholders, why this is good for shareholders

<<< CBAI HAS A PRELIMINARY PROXY FILED. IT DOESN'T GO TO SHAREHOLDERS UNTIL A DEFINITIVE PROXY GETS FILED WITH THE SEC >>>

Generex Biotechnology (GNBT) (GNBT 0.23 ?-0.43%): Reverse Stock Split Denied by Shareholders, why this is good for shareholders

So a lot of investors in Generex may have read the recent filing with Edgars on August 2nd 2010 where the company stated that at the annual meeting of stockholders the company did not get approval to effect a reverse stock split (filing here). What the company also noted was that one of the outcomes of not being able to split the stock was that: “Because the Amendment was not approved by the stockholders, the Company’s common stock may be delisted from The Nasdaq Stock Market.”

But this is misleading from a certain viewpoint. I would argue that the reason the stock is going to be delisted is because management has performed poorly and not come through with revenue streams to boast the share price, not because shareholders won’t give management a blank check. The stock is not being delisted because shareholders REFUSED to give approval of a reverse stock split, rather I would argue that management has failed to provide an impetus for share price appreciation.
http://www.gekkowire.com/?p=4466