First off, it isn't necessary, as the requirements to be in AMEX state that a stock can be on the exchange without meeting those requirements:
In certain instances, however, the Exchange may favorably consider listing an issue selling for less than $3 per share after considering all pertinent factors, including market conditions in general, whether historically the issue has sold above $3 per share, the applicant's capitalization and the number of outstanding and publicly-held shares of the issue.
Second, the CEO stated "Everything CirTran is doing is aimed at building shareholder equity," Hawatmeh said, and later, We are keeping our eye on the ball and moving forward to ensure that our investors will have a fair chance to maximize their investments,". If they announce a reverse split the price will plummet so low that the shareholders will lose close to 97.5% equity. A REVERSE SPLIT IS NEVER A GOOD THING. Do a historical study on reverse splits and you will find that all reverse splits do is give a chance for shorts to cover at exceptionally low prices.
Third, a reverse split takes a long time to recover from. There are many examples, but take IGTG as one. The reverse split came into affect months ago and the shareprice has come up to only about 1/6th it's original value.
Fourth, the CEO stated: "When I voiced disgust with the practice of 'naked shorting' in a recent press release, it was in response to speculation by some that CirTran shares were not being treated fairly -- or honestly -- in the stock market, as well as a general condemnation of a shady, unsavory and illegal practice. Note carefully, IF CIRT WAS BEING NAKED SHORTED THE STOCK PRICE WOULD NOT HAVE GONE UP THE PAST 6 WEEKS. I cannot state that strongly enough. Do not fall for the naked short excuse.
Fifth, *and most important*, if you want to maintain shareholder equity and raise the price, you must buyback shares and RETIRE them. Capitalization is better done by buying shares back and retiring them because it maintains shareholder equity, proves mathematically you're still worth the proper value, and builds ALOT of investor confidence. A reverse split destroys investor confidence.
Don't be fooled...a reverse split will kill your shareholder base.
I will step off my soapbox now.
IMO
"A one that is not cold is scarcely a one at all" --Strongbad
Recent CIRX News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/15/2024 07:37:57 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/20/2023 09:12:01 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/14/2023 06:47:40 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/21/2023 08:14:48 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/14/2023 10:10:13 AM
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