Replies to post #35572 on Demand Brands Inc. (DMAN)

[JonnyBGood]

I'm not worried about the reverse split and here's why. INMG has no toxic debt. The rs then does not serve as a way to pay that off. The financials are good so a rs is not needed from that standpoint. IMO in this case, the rs is a way to lift the stock to a level where there would be less of an influence on the pps by flippers.

Also on the conversion of the Series C Preferred to restricted common shares. This may be a sort of "poison pill" against any hostile takeover by an agressive buyer or company. It sets an inflated price on those shares which would nullify any benefit of a takeover as they would have first right to liquidation at a much higher rate than the current pps or possibly even the entire value of the company. So they're "restricted" from the standpoint that Tom would dump them if anyone tried a takeover by accumulating too much of the stock. It was a tactic that ultimately protected shareholders from corporate raiders in the 1980's.