Here's my two cents worth, I've spoken with Jack and Keith several times and my feeling is that we are going to see the reverse split much sooner than later. Keith was very emphatic about WOTD management's desire to do the split very soon. If I had to guess, I would say no more than 3-4 weeks after the merger is announced. Keith said that they will wait for the share price to set and then call the ratio. As much as I like Jack and the good job he's done, I don't think he will be the one calling the shots once the merger has gone through (though he will be a board member and probably run WOTD IR department). I agree with many on the thread that it would be nice to see the price increase to .1 or .25 before a reverse split, but I can also see it from WOTD management's viewpoint that it might be easier to make acquisitions/contracts with others if the stock price was in the $4 to $5 range (especially considering these deals are going to made with stock, it would be more reputable/attractive). As for the NASDAQ requirement of at least 1 million shares, even if they go below that at first with the reverse split, in the process of making these acquisitions or contracts they will naturally increase the float to the +1 million range.
My impression is that WOTD management has been in the planning stages of this business for several years and their prior business dealings with other companies has been on the NASDAQ or higher level. This might explain their hastiness. If they do it, and the company languishes for weeks/months without any news or acquisitions, then it could be a bad thing. But such a reverse split, with a steady flow of new businesses joining on over the upcoming weeks and months just might give it the momentum and speed it needs. It all depends on management and the behind the scene dealings we will not see. They've already got one contract in the bag ($3.5 million), so they must be doing something right. All I can say is that if they reverse split soon and make a real run for NASDAQ, they've got balls. Look at FAMH, by hell and high water Ira Monas is going to take them to NASDAQ over everyone's dead body. I admire that kind of determination and management.
John |
