Good Morning,
I've been giving more thought on the post-split for LFBG.
After the split, the company will have 10b A/S and 200,000 O/S.
Now, we know and I have mentioned this, the company will have a liquidity problem that will make trading somewhat difficult. I believe shortly after the R/S, the company will initiate a forward split in the range of about 200 for 1, which in turn, will lower the share price from $5 to .025 range and still maintain a market cap of $1,000,000 and a new O/S of 40,000,000 million.
Of course the company could do a 500 for 1, which would lower the share price to a penny and increase the O/S to 100m, but the share price will be so depressed and to climb up, will be almost an impossible task, considering the company will need to raise cash thus draging the share price further down.
The company will trade on the OTC, fully compliant and will gravitate to a higher exchange if warranted, by increase through rev and sales going into the future. This part is still dubious, since I stand by the fact, the company lacks marketing and distribution network, along with a very tight niche product line that only diversification can elevate ROI for shareholders and reason why I believe a merger is in the future.
The company will now have 40,000,000 million O/S hardly a real figure and still prevent and I realize institutions generally don't buy into pennystock companies, but their are institutions that do and their only requirement is liquidity and here again it is still a problem. So what is the company to do about this?
The next step is to announce a series of new events and one I believe and even through, I mentioned this to Troy last year, is to bring in a notable spokesman and my choice was Baldwin, who is well known in Christian circles and would certainly give this company a boost along with a nice spike in the share price. But wait, and hold your thought, because when this happens, along with this announcement and other PR's, the company will extend their reach into Southridge for a advance in the range of $100k, bringing in additional shares around 4,000,000+ bringing the total of the O/S to 45m. Southridge will inturn unload these shares into the retail market on pending PR's and the news cycle, which will hopefully dampen the drag on the share price.
Now the company will pay the spokesman like Baldwin or another person, in preferred shares that will be converted at a later date and remember the current preferred holders, are still holding preferred shares that can be converted and inching up the O/S to 100m within the next 6 months.
Shares for service will decrease and this is largely due to the new Frank-Dodd financial legislation and new Finra rules, mainly 6490 as one part. Even many brokers no longer accept pennystock certificates and pension no longer clears them and it will eventually come to the other 2 clearing house, before they enact this rule.
The reason why I believe, as mentioned above on the forward split, is that it would send a horrible message, if the company right out of the post-split gate, increased the O/S by retailing/diluting the pool without giving current shareholders additional shares, to at least compensate for their lose, even though a small jester, but never the less, a positive gratuity to say the least.
The proposed merger will comprise of shares going to the acquiring company and these shares will be common and present a significant % owned to the acquirer and accordingly raise the O/S to where, I believe by the end of 2012, will number around 300m to 500m where the company should have the proper management team in place and the right share structure with a new distribution and marketing program in place by the 3rd quarter and into the holiday season of 2012.
This is my theory, so let's continue on with the discussion and other creative ideas other than the usual ' business of past same ol same ol ' but with a hopeful positive future, that I feel the company, regardless of the current lose to holding shareholders, is the start of a new beginning.
Now of course, we need to hear from the company on it's plan and I expect very shortly ( March ) on what the future will bring.
Have a good day
Varok
AI
Market Data 
Markets 
