this is why they wanted to increase the float from 100 million up to 200 million. If they had done the reverse with only 100 million shares then they would have an extremely small float after. So, they pump up the shares to 200 million, do a ten to one reverse, and still come out with only a 20 million share float after. It has been planned and in the works for quite awhile, you just dont do a reverse overnite. This is why I find Lu's statement on that webcast about "IWAV being a great investment, because the price is so low you could double your mone easily" to be misleading. At the time of that broadcast, they knew they were going to do a reverse, it was being planned and applied for. So in effect, anyone buying on her interview is now hosed. The stock has not doubled in value since that interview, will not double in value and in fact will be diluted by up to as much as 15-1. Nice going Lu. Yeah, that doesnt sound like deception or false statements to me.
right so if i understand you you are saying that they are going to issue those shares which are at this stage only "authorised" prior to the reverese split?
Wrong, they have been authorised for this purpose which if anyone did some DD on the usual reverse split prosess would understand -
1 - you reverse split to shrink the capital on issue and artificially inflate the share price to please NASDAQ and make it more attractive to big investors
2 - then you build/pump the news (why they hired stanlis - hi jeff know you're watching!) over time while starting to bring in bigger investors (VC etc) who buy the shares that have been authorised and provide the capital to implement the business plan -
everyone then screams "dilution" but if the news is good at the same time (and a VC or similar investing is seen as good news in itself) then you are possibly better off owning less of something thats worth more on balance - (this part is of course opinion with regard to how you view the company)
the other reverse split motivation is if you are simply a basket case trying to breath your last breath - so who knows UTSI and thinks they are stupid ?
i have some notes about how UTSI will be using IWAV products if anyone is interested in turning this board around into a useful research depository for the company rather than the big winge-fest it has become -
I can't see any VC be foolish to buy any share from IWAV. UTSI invested the company with big incentive before the warning from KPMG. If UTSI has another chance to rethink about this investment after the warning from KPMG, I am sure they will better put back their money into their bank account. Do you agree?
"I find Lu's statement on that webcast about "IWAV being a great investment, because the price is so low you could double your mone easily" to be misleading."
Does your lawyer agree that the above statement from LU would manipulate the market price? Or, was LU misleading the investors of IWAV from such statement? Would it be illegal for LU to talk about the price and the value of IWAV stock while she is the CEO and Chairman.
It could be a good case for your discussion with your lawyer.