Replies to post #12950 on Innovative Food Holdings Inc (IVFH)

[ottomatic]

Thanks. Sometimes reading these things is a pretty hard thing to do. Lately I'm not sure who is holding my hand down this path. It used to be IVFH accounting was something like looking in your wallet and you knew everything you needed to know. Now ??????????

[BornAgain]

Guys, I hope you don't mind if I combine a few of your posts together to make a sticky.

From Justgolong

Our current O/S is 249,039,520...divide that by 40 and you get our new O/S of 6,222,988.

You can do the same with your shares. If you have a million shares today...you will have 25K after the R/S. However the current PPS of .0083 will then be $.332 so you lose no value.

R/S of 40:1:

A/S - remains 500M
O/S - 6,222,988M
O/S (fully diluted) - 24,971,096M
Unissued - 475M (some room to work with!)

From Dickmo

There are several reasons for Sam to do this. All are positive or can be construed as positive.

1. A higher price should reduce the bid/ask spread. As of now, one reason we have no trading is because the difference in bid/ask is as much as 20%. Once we are at 35 cents, the bid/ask spread should narrow to 10% or so.

2. It makes it easier to get a bank loan or other loan to clean up the books. No one takes a company seriously with a price below a penny. 35 cents is nothing to be proud of, but it's a lot better than 0.007.

3. It cust down the float substantially making any new demand have more impact. IVFH under a 1:50 RS will have a very small float. If ever there was a time to launch a PR campaign, post split is the time.

4. An acquirer may feel more comfortable buying a micro cap company with just a few million shares outstanding rather than a few hundred milllion. In other words, this may be part of a long term plan to get US Foods to acquire the company. It may have been suggested to Sam as a way of making the company look more professional as a step towards a possible acquisition.