Is what penny_ta saying true about a company not being allowed to dilute if they have an 'E' on it?
I'm not Jim, but I'll respond. No, that's not true. The "E" merely warns investors that there is some significant deficiency in the company's filings or they're delinquent. Normally, a company has 30-days to rectify the problem before the stock is delisted. Not sure, whether they'll be given a longer time to audit all those 10Ks again. My guess is no.
What is affected here though is their ability to file anymore S-8's. A company must be up-to-date in all its filings to use that type of registration. They no longer are.
For any past S-8's still effective and for which they had not issued the entire amount, technically the total should have decreased proportionately to the r/s. For example, the last S-8 in Jan 2005 registered 600M shares. Let's say that's the only S-8 which they had not yet issued all the stock. After the recent r/s, the split-adjusted total is now 1.71M. If the company wants to issue more S-8 stock and will go over this readjusted amount, they're supposed to file another S-8. Some companies ignore this and continue issuing up to the pre-split total. Whether they plan to do the same, I don't know. If they do and they're caught, the feds will slap them.
News 
Market Data 
Discover 
