Replies to post #22735 on Auscrete Corporation (ASCK)

[Brando1975]

Correct. Little Johnny loves his Reverse Splits.

[piker86]

To summarize my previous post, here is the history of reverse splits and dilution through self payments

June 2018, reverse split down to 3.5 million shares, company issues 50 million shares to itself, reducing the intrinsic value of all outstanding shares by over 90%

Dec 2019, reverse split down to 11.7 million shares, company issues 50 million shares to itself, reducing the intrinsic value of all outstanding shares by 80%

Feb 2021, 40 to 1 reverse split will reduce shares down to less than 4 million shares….will they continue the pattern and issue another 50 million shares to themselves as they have before? If so, this will dilute the intrinsic value of all existing stock by over 90%.

If you have any doubt they are going to issue another 50 million shares to themselves, think about their 8-k statement on the reason for a 40 to 1 reverse split. They said it was to make the stock compliant with OTCBB requirements. The minimum price requirement for OTC stocks is 1 penny per share, to stay compliant. They could achieve that with a 4 to 1 reverse split, the current price of around 0.005 would go up to 2 cents. Why 40 to 1? Because after they dilute the stock with their 50 million share self payment, increasing the number of shares by more than a factor of 10, the ownership associated with each share will drop by 90%. So they have to do a 40 to 1 reverse split instead of 4 to 1 to account for the 50 million shares they are about to add.

[piker86]

ASCK filed a form 1-A this month, offering 2 billion shares for sale at $0.001 per share. 4 times in the past they have had their outstanding share count inflated, and each time they did a massive reverse split, getting the share count down to under 10 million, followed by issuing themselves about 50 million shares, making the shares remaining after the reverse split diluted into worthlessness. See the message I am replying to for the details on the history of these reverse splits and massive self payments they have made following the reverse splits.
This process of reverse splits and massive self payments they do takes away the company from the shareholders and gives them back about 90% ownership of the company.
So expect to see another huge reverse split after they do this 2 billion share offering, and then expect to see those shares remaining after the reverse split to be diluted down to nothing with another self payment to John and Co.