« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next

Re: dilution*

By: Cactus Flower in ALEA | Recommend this post (0)
Tue, 05 Mar 13 2:04 AM | 77 view(s)
Boardmark this board | The Trust Matrix
Msg. 12753 of 54959
(This msg. is a reply to 12751 by nxtflatpanel)

Jump:
Jump to board:
Jump to msg. #

Hi nxt,

thanks for that detail.

I was surprised by the effect of the original split on the authorised shares.

So it was a ruse. Good ole Wave.




» You can also:
- - - - -
The above is a reply to the following message:
Re: dilution*
By: nxtflatpanel
in ALEA
Tue, 05 Mar 13 1:03 AM
Msg. 12751 of 54959

A reverse split does not increase the number of shares available to print.

The number of authorized shares must shrink at the same ratio of the reverse split. If they do not, as in the first reverse split, a shareholder vote must occur because that changes the capital structure of the company.

In the first reverse split, naive shareholders thought they were voting on the split itself. They weren't since that doesn't require a shareholder vote. They were actually voting on changing the capital structure by leaving the number of authorized shares intact.


« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next