Current shareholders that have been sitting here for awhile lock in their losses with the R/S coupled with the increase in A/S. CBAI will most likely do well down the road. It's the current shareholders that lose out.
What most long time shareholders are concerned with is the A/S increase after the R/S. The A/S increase is what destroys current shareholder value.
There is no reason to increase them if they aren't going to be used. At the least, the company should reduce that share increase by half. Current shareholders lose about 75% of their ownwership once those shares are used.
New shareholders coming in after the R/S and a bit of dilution will most likely do well.
Asking the current shareholders to vote to increase the A/S by such a great amount after an R/S isn't showing much concern about them at all. It's really quite the slap in the face after everything they have been told over the past year or so. No wonder there is so much discontent and the highs keep getting lower.
Special Meeting of Shareholders to be held on April 21, 2011 to vote on a reverse split of 100:1 and increase of the authorized shares to 250M from 69.45mil after the R/S
This is revised from the original 500:1 and increase of the authorized shares to 95mil from 13.89mil after the R/S
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