Replies to post #75634 on Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

I'm guessing REDG/Benny needs money to keep going. Raising money is the only reason to do a reverse split for REDG.

One of thew main problems of not reverse splitting the Z shares is their convertibility, which gives the company a ridiculously high valuation. Another problem is someone converting and selling ( you would have to be an idiot not to, if you can).

I wouldn't necessarily be worried about Benny (or most of the board) converting and selling shares. The outside counsel is a different matter. Oddly, they are not listed as an insider (you would think they would have inside knowledge about the company) and at least 1 million Z shares. As Z-shares they are only worth 1 cent a piece ($10,000). But, post split, you convert the 1 million Z shares into 100 million common shares, they are immediately worth $10 million ($0.10 each), $1 million at $0.01, or $100,000 at $0.001. The outside counsel would be an idiot not to convert and sell. (edit 2) I would expect that dumping 100 million shares post split, would crash the share price back down to $0.0001.

Edit
There are no buyers for the stock at $0.0001, I don't expect there to be any buyers post split at $0.10.