Replies to post #9078 on Coretec Group Inc (CRTG)

[Quikshft]

I would not claim 100% certainty, but you can bet that acquisitions and other appropriate deals which may have significant cost (also significant benefit) would depend on having shares of company stock to work with, another reason for the r/s. From the DEF 14A on 9/20/11;

“The reverse stock split will have the effect of decreasing the number of issued and outstanding shares of Common Stock. Because the number of authorized shares of Common Stock will not change, there will be an increase in the number of authorized but unissued shares of Common Stock. An increase in the number of authorized but unissued shares of Common Stock, by itself, does not have a dilutive effect. However, a larger number of authorized but unissued shares of Common Stock would increase the Company’s ability, without further shareholder approval, to issue shares from time to time, as may be required, for proper business purposes, such as raising additional capital for ongoing operations, business and asset acquisitions, strategic partnerships, stock splits and dividends, present and future employee benefit programs, upon conversion or exercise of debentures or warrants, and other corporate purposes. The issuance of additional shares of authorized but unissued shares of Common Stock may, depending on the circumstances, have a dilutive effect on the earnings per share, voting power and other interests of the existing shareholders.”

When you read this, you can dream up all kinds of bad things you think the company will do after the split occurs. For example, many are scared the r/s will ultimately result in a pps exactly where we started. Note what is said however, shares will be issued for “proper business purposes”. Proper business purposes would not include diluting current shareholders into oblivion, with management richly feathering their own nests. In reality the cash needs for the next year (adequate time to finish the TSP) are 2.5 million dollars. At today’s price of a penny per share, one cent per share would mean adding an additional 250 million shares to the OS, or roughly a 15 percent increase. That is not extreme, and it keeps us running for another (very important) year.

Two things I accept as truth when considering whether to remain invested in this company; 1) management is not crooked. 2) the scientists working on the project are good at what they do.