First of all I am new to this forum and wanted to say it’s one of the best out there. Good job Agoracom !

I have years of professional experience in the investment industry, not much for some but ample to many. I have witnessed, participated, voted in favour for/against, a number of times with regards to a R/S - Consolidations/ Splits/ Premium Dividends/Dividend Cuts etc. and list goes on and on with these types of corporate strategies. You can ask anybody who has basic business knowledge and they will tell you that 97% of R/S are negative. The 3% positive would fall under companies who buy shell co's (reverse takeovers) to quickly get listed on an exchange and go through a reorganization process. This saves months of applications & exchange listing costs.

Negative R/S Why? The answer is perception. Its how the market perceives the current stock price. The market will ask why is the stock below $1.00, why is there 400MM+ shares outstanding, why do they need to raise additional capital? Why the poor/good results, why no credit ? why offer equity ? why flow through ? why why why?.

I own SPQ and truly believe this company has great potential but when you tell the market that "we may not utilize the 1 for 10 split, but would like to have authorization just in case" what do you think is going to happen. I've always been told that the market is efficient and strongly believe it is. If the stock is $0.05 then it trades at the level for a reason, this is what makes a market. If you think $0.05 is cheap then buy more. If $0.15 is expensive then sell. If SPQ reports a very positive assay result and the stock pops, then it's a surprise to the market and believe it or not the market will quickly correct itself. The same goes for Real estate, if you think your house is worth $1mm and get no bids, do you truly believe it's worth $1mm. Who cares if you put the heated floors in the bathroom, it's only worth what the Market ( which is us the people) believe its worth. You can argue until you are blue in the face but $0.05 stock is a $0.05 stock and heated bathroom floors is a personal touch.

If NN's intention was to R/S SPQ when it was trading at $0.05 (early March before the rally) then his intention was to see a $0.50 stock price ( 1 for 10 ) Is this level attractive to most......NO. Does it reduce the float ...YES. Will he add a clause to pay out cash for share holders who own an odd lot position ...maybe and if so it bumps up his interest and squeezes out the little guys. Is this a good thing ? it is for NN and major share holders but not for the small share holders.

Now... If NN's intention was to hope for a rally up to $0.15 and R/S SPQ 1:10 you now have a stock trading at $1.50, a small float with good assay results.....hhhmmm potential takeover candidate and a good payday for all then he failed miserably. His advisors forgot to tell him about one minor hurdle...THE MARKET ! and that's why SPQ is back down to $0.08 . If I had a toonie for every time I heard a CEO say ( "the stock is undervalued or the market doesn't see the potential or Company ABC is trading at this level and we have better...") I could seriously list the stock on an exchange , call the company " Sorry to Hear It Trades so low" and watch the stock price take off. Watch for it people, the ticker will be SHIT.

Bottom line, if you are trying to attract potential buyers then clean up the books, reduce the debt, show results and the market will appreciate the hard work and the price should be reflected in the true net asset value. Hard work pays off, if you're going to fix a problem , then at least define what the problem is.

I currently hold SPQ and waiting for the vote to decide on whether or not to buy more.