Replies to post #32666 on Lifeline Biotechnologies Inc (LLBO)

[GetSeriousOK]

3.2 billion shares O/S is not a lot for a pinksheet stock... but it is a lot for a pinksheet SHELL.

And that is the concept behind a custodianship play. The Custodian cleans it up and tries to sell it to a private company that wants to do a reverse merger and get listed. 3.2 billion O/S is prohibitively large for THAT purpose.

When a private company merges into a shell they want a low O/S because they want to issue a bunch of new stock to raise capital. There are plenty of shells available with a much lower O/S.

BIEL is a unique case - it's a POS run by a family of hillbillies that never understood the reasons or procedures for doing a R/S so they kept increasing the A/S and issuing more convertible debt at a 50% discount -- now the A/S is up to 25 BILLION, which is ridiculous. Plus the hillbilly family holds convertible debt in the company that, when cashed in, will increase the A/S and O/S to well over 50 BILLION (I stopped counting because I stopped caring). That's one messed-up share structure and one messed-up company.