Xcel Brands, Inc. (XELB)

[slazenger7]

What do you make of them radically decreasing the A/S from 200 million to 25 million? One of the reasons stated for enacting the R/S was to dramatically decrease the O/S while at the same time still having 200 million shares available in the A/S for merger/acquisition/expansion purposes. Now there are only 5 million in the O/S and just 25 million in the A/S. They (the company) stated in the filing for A/S reduction to 25 million, that the company believes that even with slashing the A/S to 25 million, they will have enough shares and capital to complete their business plans. Seems to me they are counting on revenues (profits) coming in to negate the necessity of issuing any shares in the future thus limiting any dilution that would come from lack of funds to maintain operations and expansion.