Okay, so disregard my previous statement about this being the "best thing to happen to this stock".
After further review, it seems that MSLP is looking to do a 650 to 1 R/S...HOWEVER, the fine print states that immediately following the R/S, 100M shares will be issued. As you may well know, I have been long in this stock for quite some time, but I am afraid this company just duped us. This truly is a huge gimmick, unfortunately. I cannot say whether I will sell or not, seeing as I have already lost my pants. Might just stick around in hopes that a REAL company will purchase MSLP someday.
nucflash, they're not issuing 100M to the O/S they're upping the A/S to 100M because they want to sell $20M worth of post-split shares and the A/S would be only about 4.6M. Selling $20M would add about 5.5M to the O/S depending on the post-split selling price.
They're issuing 100M shares POST split because "the company would have only 2,941,177 shares after the Reverse Stock Split". Calculate the price of the stock after a 1-for-850 split and then multiple that by 100,000,000 shares. Tell me what dollar amount you come up with. You're only a few hundred million bucks off.
If they know what their pps will be post split, and know how much money they need then why not only authorize the required shares? Why authorize 26x what will be the new o/s...? Thats right they will authorize the equivalent of 2600% of the new o/s ... that means your holdings will devalue by 2600% once they dilute the full a/s.. which we all know they will..
Do the math.... the market cap pre-split is $9.6M, which is what it would also be after the split. The only problem is once you add 100,000,000 more shares at roughly $5.60 (post-split price), your bargain at $9.6M will increase to $560M. If nobody was buying before, there's ZERO chance of someone buying post-split.