Replies to post #28154 on InterCloud Systems Inc. (ICLD)

[shotsky]

The reverse split has nothing to do with raising the price of the shares. That is simply an effect of the R/S process.
The problem to be solved is that they still have convertible debentures which permits loan holders to take stock shares instead of loan payments.
At this time, there are no more shares to convert because the OS is maxed out to match the AS. They also have a requirement to reserve 10M shares for conversions and they don't have them at this point.
THAT is the reason for the reverse split.
The stock price simply is multiplied by the ratio of the stock split. Getting the convertible debt under control will cause the stock to go above $1 in short order.