As there are now over 50 million shares outstanding and previously it was around 40 million we can assume these were new shares issued for this transaction.
Great - Another 25% dilution.
And so it starts. Expect the reverse split within the few mos.
We are now Finavera Solar Energy.
Now, let's see if we can start earning revenue and pay back the 1 year, 5 million loan @ 15% (750K in interest - if Finavera had asked I'd have loaned them the money at that rate).
Reverse split cons, pro and prediction
- It would take a split of 1:25 to get the price near where any exchange would accept us (PPS about 2.00).
- Float would be quite small making it difficult for any fund or large investor to buy.
- Paves way for dilution, dilution, and more dilution.
- Feeds into perception that only poor companies do reverse splits.
Pro: Low share count would magnify even paltry earnings so could boost PPS fairly quickly.
Prediction: 1:10 split then dilution every 4-8 months, negative earnings for 2 yrs then a nominal profit and share price around .70 (.07 pre-split).
My strategy: Ignore my own prediction. Hold and Hope.