Colorado Goldfields Inc. (fka CGFI)

[LtColombo]

It's not the R/S that's the real concern. It's the company's ability to further dilute that causes the loss of $ to the shareholders.

Say you own 1,000,000 shares at .0001/share. You have $100 worth of the stock. There is a R/S of 1,000 to 1. Now you own 1,000 shares of stock and still have $100. The pps goes from .0001 to $0.1 or 10 cents per share and instead of 45 Billion shares the A/S goes to 45 Million. Now the company raises it's A/S to 200 Million. The share price then drops accordingly and your 10 cents per share value drops as the market sees fit.

There is generally a significant sell off of shares when a R/S occurs because investors know what's coming next.

JMO

Lt.