I believe under Nevada corporate law to do such an action by majority consent, which CFO has the voting shares, to do such a reverse requires them to reduce the authorized without a shareholders' meeting, but of course he also needs to go right back and authorize an increase to prepare company for the next round of convertible financing.
You hit the nail on the head, fantasy about creative financing bucking all trends in the banking and mining sectors. No bank will touch this company in its current state in this current regulatory environment. Even five years ago would have been hard enough without probable and proven reserves.Private Placement not probable with the convertibles out there, sub-penny status, and DTC chill ( try finding a broker who will accept a sub-penny stock certificate : as far as I know there are only three who will take any more).( I have no idea where the convertible guys place their stock).
Interesting the timing- if you recall discussion had they used up existing convertibles, then I also wonder a bit about the rapid two week increase in shares.
So wonder if CFO thinks this move will generate some PPM money if convertibles now settled, or back to the well with new convertibles.Something must be up to take this move at this time.
I feel bad for people who bought before the 5000 to 1 reverse, then decided to average down thinking another reverse not coming or massive dilution.Yet track record apparent so shouldnt have been that big of a surprise.
If I understand 8k this wil not be effective until FNRA appoves. Also very interesting the comment about physical certificate needs to be replaced- I wonder how this effects a stock with a DTC chill.
