I emailed BJ and GE about the proposal to increase the authorized shares to one billion, and how that's going to stir up a lot of shareholder concern over another eventual reverse split. I suggested they communicate whether they have a plan to address this in the future, such as a plan to initiate a share buyback once a certain level of contracts and revenues are reached, using a percentage of those revenues to systematically reduce the share count.
I'm not trying to start up another debate over the merits, or lack thereof, of a RS. I simply tried to convey to them that many of us will almost certainly sell our shares if another RS is announced, regardless of the company status or possible advantages.
I understand management has cleaned up a lot of debt and pending litigation using shares, and our LJC experience has been and apparently continues to be a big problem for the company. But I have no intention of voting for another increase in authorized shares unless the company clearly communicates their plan to address the growing number of shares in the future. I want an option that doesn't involve a reverse split communicated to shareholders.
Otherwise, it's no different than our country raising our debt ceiling once again, with no clear plan on how to address the growing problem of overspending and borrowing more.
I hope they understand our concerns and the need to address this portion of their plan with shareholders. I think we can all understand the need and can approve the increase if we know they already have a strategy worked out to eventually reduce the share count that doesn't involve another RS.
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