Replies to post #23687 on InterCloud Systems Inc. (ICLD)

[Monte_Cristo]

The 500 million authorized shares will not be reduced. Only the outstanding shares will be reduced by a factor of up to 4. This newly formed "gulf" between the number of authorized shares and the new (now reduced) number of outstanding shares will allow for further dilution as the convertible loans are turned into added outstanding shares. Some of the loan agreements, like the one contained in the most recent 8-K filing, require ICLD to reserve a set amount of the outstanding shares for loan conversions (whether pre-R/S or post-R/S). There will be further dilution*, that's why they're doing the R/S.

*Unless there's some remarkable news that convertible loans have been replaced with non-convertible paper. But non-convertible paper will have higher interest rates as there's no security attached to them.

[sprtcrdlui]

Well 1.5 Billion shares of $ICLD Traded the Last 12 Days

There is only 500,000,000 allowable shares . Where did the other Billion Shares come from?

Doesnt look like Dilution. What Do you think?

[shotsky]

It isn't dilution. It is a legal maneuver to remain legal IF all the convertible shares were converted at once. Can't exceed the A/S, and right now, almost all available (O/S) shares are sold. They need to 'lock up' 50M shares for one investor, and don't have 50M shares to lock without the R/S.
Again, there is no dilution - All the new available shares will be sold at the current price, which is NOT dilution. Dilution is when blocks of stock are sold for UNDER the current market price, which lowers the price for everyone.