CYduct Diagnostics Inc (CYDX)

[slazenger7]

Once again, this is the correct information on how a R/S works. You keep saying that the A/S is affected the same way the O/S is in a Reverse Split. That is not correct. In a 1/5000 Reverse Split, or any Reverse Split for that matter, the A/S is not automatically reduced the same amount the O/S is, only the O/S is affected by a R/S. However the company can CHOOSE to also reduce the A/S by any amount if they so desire, not because the have to, or because the A/S is automatically affected the same way the O/S is in a Reverse Split.

If the company also chooses to, they can also authorize to reduce the A/S by any amount they want to. That is how SNDY did a 1/5000 Reverse Split on the O/S and then CHOSE to reduce the A/S by 1/4 to from 2 billion to 500 million. Then as usual, they immediately started diluting the O/S again.

SNDY did not have to reduce the A/S if they didn't want to. However for luring in new investors, a 500 million share A/S looks a lot better than a 2 billion share A/S. They could always raise the A/S again later, as they did last year from 500 million to 950 million as they continued to dilute. As dilution continues to get closer to their current 950 million share A/S, SNDY will be forced yet again to decide on either increasing the A/S to say, 1.5 billion, or performing their 5th Reverse Split.