Don't forget previously when they were goldspring they had way too many share so a reverse reduced the shares to a more normal number. That's why it was a 1 for 200. 100 million shares now that they have is not exorbitant.
Understand what you are saying, but the main reason they would consider a reverse right now if they are being delisted because the stock price is below $1. A reverse would get it over $1. The financing is not the reason I am worried about a reverse. If they were at $1.50, they could still raise capital by issuing more shares at 1.5
Kgrffn11- What are you talking about ? What does financing have to do with a reverse split. They would reverse split to get the price over $1. Has nothing to do with financing.
It's obvious you have no idea what you are talking about. A reverse is not to issue more shares. A reverse is to get the price back over $1 so they don't get delisted. So if the do a 1 for 5 , the price goes to 3.75 but the shares cut down shares for every one. Takes a lot longer to make up your losses if you have them. Example if I have lost 20,000 on this stock and own 10,000 shares, my shares would go to 2000 and now it would take a lot bigger price move to make up my loss.
They probably lost about 700K to 900K from the road. So they would have had more from that in revenues.
They expect more in cost reduction this next quarter and there revenues will be higher. So I think that is how they will get profitable and make up the 3.7
Might be a good thing that earnings are being released way earlier then last year and no preannouncement which may be good.
As far as going out of business, there is NO way.
At this point if they need money and are going to do a equity offering in future, they probably want reverse to get price up so they would get more money for less shares. Example right now to get 5 million dollars they would have to issue 7.6 million shares. If they do a reverse of 1 to 10. they would need less then a million shares. Maybe my thinking is wrong but what do they give a #$%$ if they do a reverse an screw us. Then we need stock to go up even more to get our losses back because we have less shares.
You have to be kidding me. Why would you buy a stock getting killed. There could be HUGE Dilution coming, Reverse split or terrible cash flow news. And I am bullish on this stock but they give me no reason to buy more. Obviously they are giving no one reason and that is why there is NO interest in anyone buying it. Need to release some good news BUT they may not have any.
Why do you think they delist stocks below $1. They don't want the Manipulation with those stocks so they want them off the market.
Maybe with resolution, we can get back over $1 now. I know 3 million is a lot for this company but the uncertainty of how it would resolve was definitely contributing to downward price.