Replies to post #65633 on Colorado Goldfields Inc. (fka CGFI)

[1manband]

As far as de-registration I agree I cant quantify this, but I believe they will reach a point where they cant afford professional servcie cost to stay reporting.

At this point, they likely have no choice and would not be legally able to deregister. They have too many shareholders.

Any time a Company does several very large reverse splits, they create a large number of shareholders holding a very small number of shares. These holders are stuck - the value of the shares they hold is too small to sell, so they just sit on the 1 or 2 shares they have left. Typically, this results in several thousand bagholders, which puts a company like CGFI substantially over the deregistration threshold.

If they really wanted to deregister and had money available, they could do an odd-lot buyback and eliminate those small lot holders. But CGFI is perpetually broke and heavily in debt. That is not an option.

Plus the toxic death spiral convertible agreements they depend on to keep (barely) breathing to pay management salaries require the Company to remain fully reporting. Since they can't get any other financing, it is not a choice anyway.