Re: Why reverse split our shares ?
in response to
by
posted on
Aug 12, 2013 09:31AM
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1. The financing is diluting our shares not the consolidation. You own the same % of the company pre or post consolidation but not pre or post financing.
2. So far the market is supporting the anticipation of a doubling of the market cap(due to financing not consolidation) by trading at 6.5 cents which is a 62.5% premium to the financing.
3. A 40 cent sp is a little more palatable to some funds to trade/buy than a 4 cent sp.
4.The consolidation is not happening in isolation. The financing is providing support at 40 cents since 1/2 of our shares will have their start there. Purchase of Poynt along with a "Strong product launch to be supported with multiple near term catalysts" will hopefully validate the consolidation.
5.With the share consolidation the liquidity will decrease. Greatly reduces the likelyhood that once financing is done we get shorted into oblivion.