Replies to post #21905 on Plandai Biotechnology Inc (PLPL)

[Kool Aid Man]

"others would take notice of the clean shell...It's a win win for stockholders."

--naaaaaat necessarily. How badly can one be screwed? Here's a cautionary talk---

I followed one worthless ticker by the symbol TD*EY that was taken over via reverse merger. At the time the SS was reported as:

Total shares authorized: 9,000,000,000 as of: 06/30/2016
Total shares outstanding: 7,259,674,499 as of: 06/30/2016

In short, 80.67% of the A/S had been issued.

The new owner changed the name and symbol then promptly pulled a 1-for-50,000 (50 THOUSAND) reverse split!!!

Investors woke to find that each 1 million shares pegged the day before at .0001 ($100 value) had transformed into >>20 shares<< priced at $5.00 each (also $100). Sounds great eeh? They were told a higher PPS would allow the company to uplist to NASDAQ...weee...what's not to love.

The stock started falling --slowly at first to suck in as many greedy, gullible goobers as possible. "A chance to get in at a pre-R/S value below .0001" they pumped. Many fell for it, "averaging down" trying to catch the proverbial "falling knife." In this case it was a "falling chain saw." Before they knew it their $5 shares were carpet bombed down to about $0.30 cents which was the pre-R/S equivalent of .000006. ...a -94% loss BELOW .0001

By the time the new owners filed their first disclosure they reported:

Total shares outstanding: 96,365,470 as of date: December 31, 2019

Mind you, immediately after the R/S the 7.3 Billion O/S had been reduced to a mere 145,194 shares! However, as you can see above, by 12/31/19 the O/S had exploded +66,270%!! How? By duping ignorant investors that reducing the A/S from 9 billion to 1 was a great thing. In reality, it was a massive INCREASE proportionally. Had the A/S been reduced by the same 1: 50,000 it would have been a tiny 180,000. But by "dropping it" to 1 BILLION was the equivalent of a +555,456% INCREASE in the A/S!! So that's how a post-R/S O/S of 145,194 increased +% to +66,270% to 96,365,470.

Sometime thereafter the owners napalmed investors they offloaded the ticker to another company. The A/S is still 1 billion and the O/S has increased slightly to 98 million. The stock is at .09... a far cry from its post-R/S price of $5.00!!!

This is how new owners well and truly rid themselves of old bagholders from previous managements. Reverse splits never happen... till they do.