The forward split created liquidity to soften the later selling of shares for financing. Say the stock is trading at .05 and never performed the f/s. Then they need money and finance 1MM shares. Well because the float is so low and there is not investor support, the pps would drop like a rock when those shares entered the market. Now let's take our situation where they performed the 10:1 f/s. So now all of these new investors get these shares and pps is lowered and there are investors to support it. Selling 10MM shares at this level is more easily consumed by the investors then before.
kingoil - LLEG only had 3mil shares of float before the FS. The Company was added to a Ludlow Energy Index at the same time and decided they needed more shares in the float as a result. The amount of authorized shares is irrelevant in my opinion. I have seen many Pink Sheets companies continually raise the authorized shares from the millions to the billions. The only important issue is the outstanding shares, and LLEG has only had 2 times of issuance in the last year, all to fund working capital, and NO SALES BY INSIDERS. I consider that to be extremely conservative.
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