Bebida Beverage Company (BBDA)

[kidnova]

Yes, technically you are correct, however effectively it's the same. Shareholders will receive less shares than what they held previously, and there will likely be plenty of room left to dilute above what is issued initially. Your assumption that the PPS will appreciate as opposed to falling is largely unfounded. When the new shares are issued and investors realized their will be room for additional share issuance they could very well have the same reaction you see during a typical reverse split.

It's all pointless anyways as there's absolutely no way this company, or any other entity formed by current management, will ever trade on a major exchange. Even if they are talking about the NYSE MKT (fka AMEX) which has a lower financial standard they'll never meet the Corporate Governance and Compliance requirements. This is nothing but an attempt to start a whole new cycle of dilution and racing under another name.

Start from the Qualitative Standards paragraph at the link below and you'll see why this is just another in a long list of promises that will never be fulfilled:

http://usequities.nyx.com/listings/list-with-nyse/nyse-mkt-listing-standards