ricky I posted the example here - I'm not responsible for it being posted on anywhere else - However, in lieu of dismissing it why don't you prove otherwise, and start by understanding this:
What's $40,000,000 (outstanding debt
) divided by .001 ooops that right - Its 40,000,000,000.00 Now what is it divided by .01 hmm 4,000,000,000.00 now what if par value ends up remaining - What is 90% of .01 hmm .009 - So, what is 40,000,000.00 / .009 = 4,444,444,444.44
True all the numbers in some form change upon a reverse split - but, the basis of this math doesn't. As you can see it doesn't matter even if par value was to remain .01 YA Global wins.
So where is the math problem? and that is even without consideration given to all of the warrants available to YA Global
Bottom line YA Global by way of a reverse split - enables itself to convert as is, as opposed to a cash payment, and they have set themselves up quite nicely with the reverse split (with no reduction of A/S) < There is no possible argument one can logically make in the regard. There is a reason why they pushed for a reduction in par value and a R/S without a reduction in A/S
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