Reverse split probable
As far as I can tell, it has not been announced that they are doing a reverse split, but with the $150 million being issued of common stock, the shares will probably get diluted down by at least 2/3 of the closing price today of $0.60. I expect the stock will settle at around $0.20/share (or lower) once the stock is issued. I can't believe that someone would want the stock to be a penny stock after putting up that kind of money, so as part of the deal, I expect there is an agreement to do a reverse split of at least 1:25 (or worse) to get the price back up to mid single digits of around $5/share.
I do seem to remember that they did a reverse stock split a while ago, and after an initial slide in the shares, it looked like things were finally going to stabilize, and even start to go up. I considered buying in at that point but for some reason felt it was just a pause in a long term down trend, which is now going to continue.
Louis J. Desy Jr.
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