With a reverse split, "Out with the old and in with the new" is generally what occurs, screwing over "old" stockholders.
Xcentia COULD make any statement no matter what their control level. Given the amount of news available that level is not really known, is it? I would be very disappointed if Maxam gave up control of their technology without a significant cash bonus and I will probably bid this company adieu if it is true.
It is reasonable to assume that Xcentia came into this deal with hopes of profiting from the exercise, and you can say it would have been a smart thing for them to make certain beforehand that they can afford to make those efforts.
It is,also,certainly possible some "big pockets" may want to tinker with the number of the outstanding shares, but that doesn't make him a genius, obviously, because the market value does not change due to the split. It is more likely, under an agreement to reverse split first/investment later, the investor is a crook, not to mention the idiot that made the deal.
For the Company to do a reverse split on the hopes of investor money, would be nothing short of stupid, maybe criminal.
The resumption of pre-split prices after a reverse split comes from criminal scumbags illegally manipulating the stock price, not from anything resembling common sense, and I would contend that ANYONE supporting a reverse split should be suspect of colluding with those criminal scumbags. |
