DD Support Board and Research Team

[smalltimetrader]

F/S - Looking for assistance (understanding)

The following ticker $BYRG is making some odd share arrangement for stock holders who are in by a certain date. Going to convert them to preferred shares (I think).

They didn't call it a forward split, but I thought that was basically when they remove stocks from the common O/S and put them into another class so the remaining float would be smaller and more volatile.

I guess, I need help understanding that this is really what this company as doing under the guise of rewarding existing stock holders with "gains by leaps and bounds". Also, whether my interpretation of a forward split is right.

Here is the press release for the "reward"

NEWS
Buyer Group International, Inc. (BYRG.PK) Investments Up, Positive 19.5% on Growth, 20% Participation Increase Coming Up

Buyer Group International, Inc. (BYRG.PK) Investments Up, Positive 19.5% on Growth, 20% Participation Increase Coming Up
PR Newswire

DALLAS, Dec. 19, 2011

DALLAS, Dec. 19, 2011 /PRNewswire/ -- BUYER GROUP INTERNATIONAL, INC. (BYRG.PK)– advises it has made available its 3rd quarter updated information available online at www.otcmarkets.com/stock/BYRG/financials reflecting yearly investments which rose to $135,334 in the 3rd quarter generating $26,400 cash representing a 19.5% return on operating assets and for the third quarter, showing higher than expected results in a sluggish economy.

After the 4th quarter closes, the $500,000 participation interest in "Blood Will Tell" will be bumped to $600,000, a 20% increase for shareholders who currently own and purchase additional shares of Buyer Group International, Inc. This will give shareholders some additional time to purchase more shares to increase their pro rata interest from the cash to be generated by that film sometime early next year. The deadline for shareholders to buy new shares to get the increase is expected to be January 5th, 2011.

The CEO of Buyer Group International, Inc. was quoted as saying, "The third quarter was very slow yet we were able to squeeze out a profit from our investments made in the beginning of the year and this I find extremely positive given we've just started selling this product and the current economy is horrible. The 4th quarter should result in investment gains due to the participation interest we signed up from Gryphon Productions Ltd. on "Blood Will Tell" and this will increase from $500,000 to $600,000 in preferred stock to those loyal shareholders. When the projects with placements totaling $13.5 million start generating cash expected early next year we will be rewarding our shareholders of record with returns that grow by leaps and bounds. So we're tuning up our capital structure of outstanding shares to give investors a better expected return due to less dilution of the common stock. Shares exchanged to the company from shareholders of record will be seeing huge dividends as a result of holding their shares in the company. Day traders may make lunch, but they won't be eating at the table next year when results start to pour in. We wish our long term shareholders a Happy Holidays and all the best for the New Year."

Upon feedback from shareholders the board decided to lower the authorized shares since large outstanding amounts are not needed at this time. Filings to be filed with secretary of state within 10 business days according to the following table as reported on OTC Markets.

In bold is the section which raised red flags to me.


Thank you in advance