The only way I can see investors voting a 1 for 100 reverse split is if management essentially already controls nearly half the shares.
I could understand a desire to bring the count down to the 100 million range, though it's certainly not necessary. Bringing it down to 5 million and change is clearly a way of putting current investors at a point where they'll only represent a couple percent, if that in a matter of a few years as they dilute to 100 million shares or more.
If they really want to get the acquisition done, and an R/S is a must to doing it, make current investors a far more palatable offer, perhaps 1 for 5, but more than that and I certainly won't go for it, and I'd encourage others to agree with me.
They have not yet specified what they're proposing to give the company they're acquiring. I suspect that they may be giving them more shares than are currently outstanding, if that's the case, current shareholders will immediately be in the minority once this arrangement goes through. If that's the case, or close to it, it really becomes a takeover by the company we're saying that we're acquiring. I've heard of such things before, but never participated.
Gary
News 
Market Data 
Discover 
