VirTra Inc (VTSI)

[ztect]

In response to dlewisfl, any company entering in an agreement is going to do their own due diligence so I concur that share price shouldn't be a deterrent.

Anyhow, can any one give me examples of a reverse split that actually enhanced share holder value? Market psychology doesn't look upon r/s's favorably. Every R/S I've ever witnessed whatever the underlying motivation has resulted in a loss of share holder value especially short term.

Say after the R/S the price is initially $8.00, the likelihood of the price dropping to $2 or $3 dollars is a lot lot greater than any minor uptick.

In hindsight, getting rid of the debt obligation made the most sense and this was a good course of action to reduce the risk of even greater dilution. So using resources to reduce debt obligations made more sense than to comply with Sarbanes Oxley. But now that the debt obligations are gone, to increase share holder interest, the first logical step from my perspective would be to do audited financials. Next or concurrently, to increase current shareholder value, especially at these low share prices, would be to do a share buy back retiring the shares bought back. This would reduce the OS and play favorably into market psychology, and lead to a higher share price.

The argument against this buyback strategy is that using resources to buy back shares would inhibit investment in growth which is true....which to me may get to the real reason behind the desire by the company for the R/S, and that is if the company is seeking to grow and looking for additional money (investment) from companies or investment, the current share structure is a deterrent for that investment.

SO as a current long time shareholder trying to maintain value, my decision is a "no" vote on the r/s, divestment before the r/s if r/s is approved, and then possibly reinvestment after the r/s price corrects itself.