No, retail shareholders have no chance of stopping or changing anything. If you read the Proxy you will find the insiders and finance people own 102.6% of the stock. Now I'm sure you will say how can they own more stock than is available? But they Proxy is based upon filings that go back a ways, and the numbers are not exact.
What about all that buying you ask. I can't tell you. If you are in the finance group, the last thing you want is to be holding shares. Someone has to buy the shares after you convert or you don't make any money. So that is the great mystery.
But the point is that they collectively own the whole company. I'm not sure of the total number of owners there currently are, but I remember somewhere that I saw the number around 400. My guess is that retail investor own far less then 2% of the company. So, no you don't have the votes to do anything, even collectively.
Everyone knows I don't own many shares. And even those are just in case there is a civil suit (class action) filed. But I see one benefit of this quasi-reverse split as getting the share count down to a reasonable number so that we can understand who owns what. It is a lot easier to see numbers in the hundreds and thousands then in the billions. It will make it harder for them to hide things.
If you read my posts in the past week you get the hint that I might be buying after the R/S. If they do the 1:25,000 and set the conversions at a reasonable number, this becomes a decent trade for speculative investors. Note the word speculative. If you buy after the split, forget making 100's of percent profits and settle for 15% here and 20% there. Do that enough and you can make some real money. Each time they release news there will be a spike. With the share price at $2.50, and the share count at less then 500K, any positive news will spike it up. Holding a few thousand shares at $2.50 and selling into a 20% news pop will make you a nice little profit. Then it will settle back down. Then you can do it all again.
Only go long when they get closer to the NDA. But that is years off. In the meantime you can make money playing this. And here is the kicker, with you trading this for the pops you are actually helping the company by making the market for the stock.
But the key is the conversion price. If it is too low and they get billions and billions of shares, there will be massive selling into any news and that will hurt your chances of selling into a pop. If the company is smart they will work out a deal where there will be a enough conversions to get finance people their money back, but not so much to that it kills the price like it has done in the past.
With $38.5 million in conversions sitting out there, and the company needing money in less than 6 months, they better get their act together soon. I think this is their last shot at getting it right.
