Steve - in case of DE-Listing from NASDAQ, the stock price will DROP further.
Thanks for your posting. In fact, these both REG S investors seems to be the MOST shareholder-friendly ones, I have ever seen.
I don't know, what is your knowledge about Offshore REG S "operations" resulting in damaging stock prices. (Instead of talking to much, just check e.g. the graphs of MTCI, ANMR, TCHPD in the last one year or so etc.)
IT SEEMS, that LSGT had LUCK with the REG S investors.
But the HUGE danger is the DE-Listing of the stock from NASDAQ Small-Cap. (In fact, we are already in a kind of "Bad NASDAQ" - because of being SmallCap only, but that should be OK.)
In case of a DE-Listing from NASDAQ SCap, LSGT will be listed on the so-called "OTC Bulletin Board". The problem with that is, that NO serious Investor/Mutual Fund/Institution would ever invest into an OTC BB traded stock. The Bulletin Board is the UNCONTROLLED JUNGLE of everything which has for one reason or the other a "Questionable Value", as a Company.
Reasons are e.g. Less than 1 Mio current assets, or full of debts etc. Also Chapter 11 and similar companies are traded on OTC BB.
You see: it is the "Bronx or Harlem" of the stock market. There is NO real control, like in NASDAQ.
THIS IS THEN A CLEAR DOWN-GRADE of the stock - which (normally) directly results in lower share prices. I have two of such stocks: they NEVER recovered.
In order to "escape" the NASDAQ DE-listing, companies will try "everything". Mostly, this means a 1 for X reverse split.
In case of LSGT, this should be at LEAST a 1 for 5 Reverse Split. This means, you will get 1 Share for 5 of your now existing LSGT shares. THEN the price suppose to be "5 times higher", means with LSGT 5*0.25=1.25 USD => Meeting the 1 USD minimum requirement for further NASDAQ SCap Listing.
BUT this is very-very Dangerous ! In a Reverse Split, a share normally loses 30-50% of its value.
Means - that in case of LSGT a 1:5 Reverse Split would give 1.25 USD,
but losing "only 20+ %" of its value - would put back the stock price BELOW 1 USD again. And the DE-LISTING would be still there after a WRONGLY choosen Reverse Split ratio !
If LSGT chooses a Reverse Split, I feel, they should choose 1:7 or even 1:10 - everything else, would result in DELAYED de-listing - because of the above mentioned. (-> Dropping share price of Reverse Splitted stocks below 1 USD.)
In fact, I am very much P*SSED off about this guy, you have been talking to in the LSGT Public Relation. From your last mail:
"... I called the new PR person Joe Garber to ask him about the possibility of delisting. He said the 10Q has information addressing this ..."
What a STUPID comment is this ? If this is in the 10-Q -> then this information is PUBLIC anyway and he can tell it straight away.
If he does NOT know exactly, what is in the 10-Q -> then he has the wrong position as charge of the Public Relation.
Sorry - but such an answer to a shareholder is a REAL joke. And not a too good one either .....
Hope I am not talking too much confusion. Just ask, if any questions.
Regards,
Stefan |
