InvestorsHub Logo
icon url

clawmann

10/11/08 4:05 PM

#149480 RE: krays #149478

What you just posted supports my RS theory. By reducing the par value from .01 to .001, the board may be able to do an RS without a shareholder vote. If that happened, the OS gets reduced to 1/100th of what it was but the AS remains at 5 billion. That takes care of the problem you referred to. Everyone takes the 1/100 hit, including YA; but there would then be a huge difference between the OS and the AS.

YA could easily get all of the shares it needed. After a 1/100 RS YA's potential 20 billion shares would be reduced to a potential 200 million shares, a number well under the 5 billion authorized. And the 1 billion shares held by retail investors (us) would be reduced to 10 million.