Replies to post #33685 on InterCloud Systems Inc. (ICLD)

[SWlSS]

That would defeat the purpose of the R/S.

[shotsky]

Yes, the AS will remain the same and the OS will shrink. The stock price will go up by 4X.
OTC companies that function by splitting and diluting raise cash to operate that way, and it can go on for a long time - even years.
But functioning companies want to uplist to OTCQX or Nasdaq don't do it for that reason. An equity investor gets stock in return for cash. That case is used either to refinance debt or for acquisitions, etc. The equity investor EXPECTS the price of the stock to appreciate, which is the investor's reason for investing.
So, ICLD will split, but not for the reason of converting debt, which is the toxic type. They want to, and may have ended that. We know from CEO's announcements that they are working to uplist, which means a higher stock price and a lower OS. They would need another vote to reduce the AS, but I do expect we'll see that at some point too. No reason to have a large AS unless you expect to need a lot of shares.
I would expect things in this order:
RS
Equity investor to inject cash to clean up all remaining debt
Possible equity investor for acquisition
Reduce AS
Increase value through operations
Uplist