InvestorsHub Logo

Maria56

11/16/19 8:43 PM

#87508 RE: bme #87507

You have to think of the Authorized shares and the Outstanding shares separately and don't forget about all those Preferred Shares included in the AS! The Company has said they plan to reduce the AS from 7.5 billion to 1 billion. But that does not tell you HOW they plan to do that. It sounds like a simple 7.5 to 1 RS but it probably won't be.

The 1000:1 is just a guess (at least for me) - but keep in mind that when the company reduced shares from 9B to 1B in 2015, they did it with a 2500:1 RS, not a 9:1 RS.

UPDATE to ADD: Also, the filing did NOT say a 7.5 to 1 RS. It says "The recapitalization plan includes a reverse stock split and a decrease in the authorized common and preferred stock from 7.5 billion to 1.0 billion."

Slojab

11/16/19 9:03 PM

#87509 RE: bme #87507

First off, the news didn't say anything about the size of the R/S. Only that the A/S was going to be lowered, which might be an attempt to soften the blow. They could have also not lowered the A/S, which wouldn't mean that the R/S ratio was going to be 1:1, right? (-:

Anyway, as to my guess about 1:1000, it's just that. But it's based on what might almost amount to a minimum that trip zeroes reverse at. It could also be 1:500. Lower than that, would be good.