As a result of the Malecon acquisition, LX Retail Group ended up with majority control of OMHE. Immediately after the acquisition there were 1,130,651,683 shares outstanding (OS). mCig returned 172 millions shares for the purchase of VitaCig. mCig then converted it's $90,000 note in exchange for another 17 million shares of OMHE stock. The result is the OS we see today...
1,130,000,000 OS - 172,000,000 shares returned by mCig + 17,000,000 shares issued to mCig -------------------------------------- 975,000,000 current OS - 575,000,000 Restricted shares owned by LX Retail - 75,000,000 Restricted shares owned by mCig ----------------------------------------------- 325,000,000 free trading shares (float)
On April 3, the company announced a restructuring of it's shares...
The series B Preferreds can't be converted for 24 months after issue. There is a discrepancy here as the 8-K only authorized 1,500,000 Series B Preferreds. I think this is just a typo as the conversion ratio would suggest that the true conversion would be for 500,000 Series B Preferreds not 5,000,000. Hopefully this will be clarified on the 10-K.
500,000 Series B Preferreds = 50,000,000 votes
418,938,292 common shares - 50,000,000 common shares converted to restricted Preferred B --------------------------------------------------------------- 368,000,000 common shares OS after restructuring
To do an acquisition, Omni would merely issue additional Series B shares or Blank Check Series C Preferreds (Conversion ratio and terms to be defined later by the board). In either case, there would be no immediate dilution as preferred shares are not counted in the OS when determining Earnings Per Share (EPS).
There is absolutely no need for the company to do a Reverse Split (RS)!