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Cassandra

04/03/12 8:15 PM

#9622 RE: Ichauway #9621

With 4,500,000,000 authorized shares even following the 1000 to 1 reverse split, you can count on millions of new shares being issued to purchase the new company. They should be restricted so shouldn't hit the open market for a year, but I have seen them hit right away with some companies in apparent violation of Rule 144.

Lazlo Garcia may do a Reg D 504 offering using a bogus exemption to claim that new shares issued in a private placement are immediately free trading as well. That was a popular strategy of BAC clients, many of whom have become non DTC eligible as a result.

NV SOS:
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=20qv3NKMNu7jdp77p%252buQKg%253d%253d