Replies to post #10148 on DarioHealth Corp (DRIO)

[Smilin_B]

The A/S (Authorized Share Count) is a FIXED number of shares that the company can tap into (sell privately to raise cash, or use as leverage in lieu of cash)

Whenever shares are taken from the A/S and distributed, this increases the O/S (Outstanding Share Count)

A REVERSE split is a mathematical maneuver that increases the share price (in DRIO's case by a factor of 5) but REDUCES the amount of OUTSTANDING SHARES (also by a factor of 5)

So, the A/S remains the same as the O/S decreases.

This affords the company the ability to dilute even more shares from the A/S into the O/S

R/S , dilute , R/S, dilute etc

This is the precise reason we have so many stocks trading in the .000x range

[jimmenknee]

Smilin_B gave a great explanation. On the surface, the Proxy Statement made sense and-- IMHO -- should have lead a shareholder to support the motions and vote in favor...

... it's the actual use -vs- intended use that bothers me. Again it points to/through the CFO-- not very confident in his ability to maintain/grow shareholder value :-(