SEC filing has interesting information in it on VPCO, sounds like reverse split, NASDQ listing, cleaning up board of directors
� Within 60 days after closing, the Company is required to effect a reverse stock split on its common stock at a ratio determined in good faith by the Company's Board of Directors (the "Board") based on market conditions and other factors it deems relevant subject to the reasonable approval of the Investors which are affiliates of AWM Investment Company; provided, however, that the split ratio is required to yield an immediate post-split adjusted price per share of common stock of not less than 150% of the minimum bid price required for the Company to list its shares of common stock on The NASDAQ Capital Market;
� Within 180 days after closing, the Company is required to reconstitute the Board so that as so reconstituted, the Board shall consist of not less than five members, a majority of whom are required to qualify as an "independent director" as defined in NASDAQ Marketplace Rule 5605(a)(2) and the related NASDAQ interpretative guidance;
� As soon as reasonably practicable but not later than December 31, 2013, the Company is required to reincorporate to the State of Delaware from the State of Nevada;
� As soon as reasonably practicable but not later than 9 months after closing, the Company is required to list its common stock on The NASDAQ Capital Market and up until such time as the listing is accomplished the Company is required to comply with all NASDAQ rules (other than NASDAQ's board composition, board committee, minimum bid price and similar listing requirements), such as holding annual meetings and the timely filing of proxy statements; and
� Within 30 days after closing, the Company is required to reduce the number of shares of common stock reserved for issuance under its existing equity incentive plan to 9 million shares from 40 million shares (prior to giving effect to the reverse stock split referenced above). At no time is the Company permitted to have awards outstanding under its equity incentive plan(s) or otherwise for more than an aggregate of 9 million shares of common stock (appropriately adjusted for the reverse stock split referenced above and for any other stock split, stock dividend or other reclassification or combination of the common stock occurring after the closing).
After looking thru the "Investors" in the 8K. It looks like this fund bought 1,000,000 shares - PREOX
The big investor (over 8M) is AWM Investment Company Inc. which looks to be private and the shares are spread accross 3 subsidiary companies.
Also, From what I've read, there are different minimum bid prices to be listed on the NASDAQ. It looks like you can be listed with a bid of 2-3 dollars depending on revenue & asset values. Does any one have a good grasp of these requirements?
Good part....."that the split ratio is required to yield an immediate post-split adjusted price per share of common stock of not less than 150% of the minimum bid price required for the Company to list its shares of common stock on The NASDAQ Capital Market;"
If you look at the reverse on incentive plan it looks like a 4.5 to 1 reverse. This will end up being a small outstanding and float stock......will make it a momo stock with the earnings and sales growth I think they will have. Institutional buyer and likely new board members seem to know what they are doing and getting listed on NASDQ.