Replies to post #13264 on Intl BioChemical Industries Inc fka IBCL

[SRT8]

Reverse split...no split...

What is the big deal one way or the other????.....The share price will probably never again reach .03 in either event....so why is anyone interested in this stock any longer? [those that bought higher than .02]. Can someone show how the vote outcome can possibly increase the share price enough so that one could buy a warm Fallstaff for the equivalent of 100 shares of IBCL.....right now I figure that IBCL shares are far cheaper than second rate wallpaper....BB//BB

Board has been very quiet recently since the SEC has raised its ugly head again...anyone getting phone calls from our federal agency....?????

[GGraessle]

Invest in Kids

"I don't understand is why REDUCING the number of shares (via the reverse split) is necessary."

Ok - let me take another shot at this.

1. Hicks has preferred shares, some 11 million worth or some thing in that neighborhood.

2. According to the agreement Hicks can convert those preferred shares to common shares so he can "sell" them and recoup his investment. The conversion is in the agreement and uses some formula.

3. IBCL is authorized to have 100 million shares outstanding.

4. IBCL has issued all 100 million shares.

5. IBCL has no more shares to issue and hence can not convert Hick's preferred shares to common.

6. IBCL needs to do a reverse stock split so it can get under the 100 million authorized and once again issue more shares so Hicks can convert preferred shares to common shares.

Obviously number 6 is the reason, and 1 thru 5 support it or provide the basis.

However, and here is the catch. In order for IBCL to do a reverse split it has to be approved by the shareholders of those 100 million. If a majority vote no, then in effect Hick's is stuck.

Does that explain it?

[jurisper]

kids: A R/S keeps the number of authorized shares the same, but reduces the number issued. So you have more shares available to issue. For IBCL: authorized would stay at 100 mn, issued would come down from 100 mn to [forget what the ratio here is].