Replies to post #8221 on SilverSun Technologies Inc (SSNT)

[Det_Robert_Thorne]

SSNT will likely implement a reverse for uplist

I sold out about a year ago, making a nice profit on the shares I bought in the weeks after the last reverse in June, 2011. Sold for personal reasons, not because I disliked the company.

That said, I've been impressed with the steady improvement in SSNT's business.

It's going to be a good thing for the company to uplist, but in order to meet the $1 threshold for NASDAQ listing, there's going to have to be another reverse split, and in fact, on page 5 of the S-1 filing, the following is stated: [Emphasis added by me]

NASDAQ listing requirements include a stock price threshold. As a result, prior to the completion of this offering, the Company may need to take necessary steps to meet NASDAQ listing requirements, including but not limited to a reverse split of our Common Stock.

I figure a 1:10 or 1:15 reverse to get the price into the $2 range.

They're also planning to offer about $8M in new stock, probably post-reverse.

Figure at a 1:10 reverse, the 118M shares currently out there would become roughly 12M shares at say, $1.80 - $2, with another 4.4M shares from the new offering, for a total of 16M shares.

This should make the stock a lot more liquid, and while there may be a drop after a reverse, the improving business will eventually stabilize the price at a fair multiple of earnings.